PT Inti Indosawit Subur – Tungkal Ulu Palm Oil Mill

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RSPO Public Summary Report Revision 1 (Sept/2014)

RSPO SURVEILLANCE ASSESSMENT (ASA – 4)

TUNGKAL ULU MILL AND ITS SUPPLY BASE (PT INTI INDOSAWIT SUBUR)

Office: Jl MH Thamrin No 31 Jakarta 10230

Location:

Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu District, Tanjung Jabung Regency Jambi, Indonesia

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TABLE OF CONTENTS

Page No.

Section 1 Scope of the certification Assessment .................................................................. 3 1.1 Company Detail ...................................................................................... 3

1.2 RSPO Certification Information & Others Certification................................. 3 1.3 Location(s) of Mill and Supply Bases ......................................................... 3

1.4 Description of Supply Base ....................................................................... 4

1.5 Planting and Cycle ................................................................................... 5 1.6 Certified Tonnages .................................................................................. 5

1.7 Actual certified Palm production ............................................................... 5 1.8 Actual Sales of Certified Palm product ....................................................... 5

1.9 Actual Certified FFB Received Monthly ...................................................... 5

Section 2 Assessment Process ........................................................................................... 6

Certification Body ............................................................................................... 6

Assessment Methodology, Programme, Site Visit ................................................. 6 Tentative Date of Next Audit ............................................................................... 7

Total No. Of Mandays ......................................................................................... 7 BSI Assessment team ......................................................................................... 7

Accompanying Person

7

Section 3 Assessment Finding ............................................................................................ 8

3.1 Detail of Audit Result ............................................................................... 8 3.2 Progress Against Time Bound Plan ........................................................... 8

3.3 Detail of Finding ...................................................................................... 8 Non-Conformity ...................................................................................... 8

Observation ............................................................................................ 10

Positive Finding ....................................................................................... 11 Issues raised by stakeholders ................................................................... 11

3.4 Status of Non Conformities Previously Identified and Observations ............. 12 3.5 Summary of the Nonconformities and Status .............................................

14

Assessment Conclusion and recommendation ............................................................................. 15

Acknowledgement of Assessment Findings ................................................................................. 15

Appendix A Summary of Finding .......................................................................................... 17

Appendix B Time Bound Plan................................................................................................. 99 Appendix C Certification Unit RSPO Certification Detail ........................................................... 102

Appendix D Assessment Plan ................................................................................................ 103 Appendix E Stakeholder Contacted ....................................................................................... 105

Appendix F RSPO SCCS (CPO Mill: Mas Balance)…………......................................................... 106 Appendix G The Company’s Map Location .............................................................................. 111

Appendix H List of Abbrevation Used ..................................................................................... 113

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Section 1 Scope of the Certification Assessment

1.1. Company Details

RSPO Membership

Number No.1-0022-06-000-00 Membership

Approval Date

6th February 2006

Company Name PT Inti Indosawit Subur – Tungkal Ulu

Address Head Office:

Jalan MH Thamrin No.31, Jakarta 10230 – INDONESIA.

Location Address: Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu Sub-district Tanjung Jabung Regency, Jambi Province, Indonesia.

Subsidiary of (if

applicable) PT. Inti Indosawit Subur

Contact Name Ms. Asrini Subrata

Website www.asianagri.co.id E-mail [email protected]

Telephone +62 21 230 1119 Facsimile +62 21 230 1120

1.2. Certification Information

Certificate Number RSPO 594422 Certificate Start Date

15/08/2012 Certificate End Date

14/08/2017

Scope of Certification Production of CPO and PK of PT Inti Indosawit Subur - Tungkal Ulu Palm Oil Mill and its supply base.

Mill capacity of Tungkal Ulu POM is 60 tonnes FFB/hour.

Standard Referring - RSPO SCCS Certification System and Standard, 2007, Rev. 2011.

- RSPO P & C, Generic Standard 2013.

- RSPO SCCS certification system and standard, 2014 for CPO Mill

Other Certifications

Certificate Number Standard(s) Certificate Issued by Expiry Date

ID05/65250 ISO 14001:2004 SGS 10 June 2017

EU-ISCC-Cert-DE100-20152541 ISCC EU SGS 8 Sept 2016

1.3. Description of Supply Base

Estate Mature

(ha)

Immature

(ha)

Total Planted

(ha)

Infrastructure

& others (ha) Total Ha

% of

Planted

1.3.1. Tungkal Ulu Estate (own Estate)

4,396 0 4,396 160 4,556 96,49%

1.3.2. Schemesmallholders/Plasma

- KUD Bina Usaha 910 0 910 0 910 100%

- KUD Sawit Kita 1,028 0 1,028 0 1,028 100%

- KUD Karya Kita 1,168 0 1,168 0 1,168 100%

- KUD Karya Jaya 810 0 810 0 810 100%

- KUD Panca Mukti 792 0 792 0 792 100%

- KUD Sari Bumi 764 0 764 0 764 100%

- KUD Manunggal Jaya 208 0 208 0 208 100%

- KUD Sawit Mulia 1,362 0 1,362 0 1,362 100%

http://www.asianagri.co.id/

mailto:[email protected]

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- KUD Argo Makmur 1,130 0 1,130 0 1,130 100%

- KUD Harapan Jaya 1,130 0 1,130 0 1,130 100%

TOTAL 13,698 0 13,698 160 13,858 98,84%

1.4. Location(s) of Mill & Supply Bases

Name

(Mill / Supply

Base)

Location [Map Reference #]

GPS

Longitude Latitude

Tungkal Ulu Mill Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu

District, Tanjung Jabung Regency Jambi, Indonesia.

E 102° 58’ 53” S 01° 18’ 01”

Tungkal Ulu Estate Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu District, Tanjung Jabung Regency Jambi, Indonesia.

E 102° 56’ 54” - 103° 11’ 41”

S 01° 17’ 18” - 01° 20’ 42”

KUD Bina Usaha Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 102°55’ 03.9” S 01°20’ 23.5”

KUD Sawit Kita Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 102°56’ 58.9” S 01°19’ 01.5”

KUD Karya Kita Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu District, Tanjung Jabung Regency Jambi, Indonesia.

E 102°58’ 16.3” S 01°20’ 40.1”

KUD Karya Jaya Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 102°00’ 35.4” S 01°20’ 34.0”

KUD Panca Mukti Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 103°04’ 01.1” S 01°19’ 09.8”

KUD Sari Bumi Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu District, Tanjung Jabung Regency Jambi, Indonesia.

E 103°02’ 39.3” S 01°21’ 50.4”

KUD Manunggal

Jaya

Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 103°01’ 38.1” S 01°21’ 45.0”

KUD Sawit Mulia Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 103°05’ 38.9” S 01°20’ 36.0”

KUD Argo Makmur Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu District, Tanjung Jabung Regency Jambi, Indonesia.

E 103°07’ 40.6” S 01°19’ 16.9”

KUD Harapan Jaya Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 103°10’ 05.0” S 01°19’ 15.9”

KUD Sawit Mulia Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu


E 103°05’ 38.9” S 01°20’ 36.0”

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1.5. Plantings & Cycle

Estate

Age (Years) in Ha Tonnage / Year

0 – 3 4 – 10 11 – 20* 21 - 25 26 - up Total Estimated

(2015)

Actual

(2015)

Forecast

(2016)

Tungkal Ulu - - 50 4,346 - 4,396 106,342 100,580 99,181

KUD Bina Usaha - - - 910 - 910 20,465 17,086 20,194

KUD Sawit Kita - - - 1,028 - 1,028 22,345 21,068 21,762

KUD Karya Kita - - - 1,168 - 1,168 26,798 26,867 26,984

KUD Karya Jaya - - - 810 - 810 18,615 23,107 19,744

KUD Panca Mukti - - - 792 - 792 6,759 0 5,476

KUD Sari Bumi - - - 764 - 764 1,056 0 1,645

KUD Manunggal Jaya - - - 208 - 208 535 1,476 3,238

KUD Sawit Mulia - - - 1,362 - 1,362 9,283 880 7,021

KUD Argo Makmur - - - 1,130 - 1,130 10,996 10,536 24,953

KUD Harapan Jaya - - - 1,130 - 1,130 4,071 0 11,316 TOTAL CERTIFIED FFB - - 50 13,648 - 227,265 201,601 241,514

Supply Base from independent third parties/Middle man 100,00

Total Supply FFB 341,514 Note: *There is no planting from 2005 – up (the last planting year in 2003)

1.6. Certified Tonnage (tonnes)

Mill Estimated (2015) Actual (2015) Forecast (2016)

FFB CPO PK FFB CPO PK FFB CPO PK

Tungkal Ulu Mill 227,265 52,237 12,386 201,601 44,718 10,833 241,514 53,939 13,042

TOTAL 227,265 52,237 12,386 201,601 44,718 10,833 241,514 53,939 13,042

1.7. Actual Certified Palm Production

MILL Capacity CPO (tonnes) PK (tonnes)

Tungkal Ulu Mill 60 TPH 44.718 10.833

1.8. Actual Sales of certified Palm Product (15/08/2015 up to audit 18/06/2016)

MILL Certified CPO Sold Certified PK Sold Remarks

Tungkal Ulu Mill 8,429.36 9,175.92 Sales of certified palm products in eTrace

1.9. Certified FFB received monthly in previous year (Tonnes)

Month Tungkal Ulu

(tonnes) Tungkal Ulu Smallholder

(tonnes) Total FFB Certified

Received (Tonnes)

Jan 6105 4,466 10,571

Feb 5872 4,787 10,659

Mar 6458 6,582 13,040

Apr 6978 7,625 14,603

May 8771 10,129 18,900

Jun 8721 11,460 20,181

Jul 7504 9,043 16,547

Aug 11969 11,483 23,452

Sep 9393 9,843 19,236

Oct 10933 10,604 21,537

Nov 8334 8,656 16,990

Dec 9541 6,344 15,885

Total 100,580 101,022 201,601

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Section 2 Assessment Process

2.1. Certification Body: BSI Services Malaysia Sdn Bhd,

(ASI Accreditation Number: RSPO-ACC-19) B08-01 (East), Level 8, Block B, PJ 8, No.23,

Unit 10-03, Level 10, Tower A, The Vertical Business Suites,

Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia

Tel +603 7960 7801; Fax +603 7960 5801 [email protected]

www.bsigroup.com

BSI is a leading global provider of management systems assessment and certification, with more than

60,000 certified locations and clients in over 100 countries. BSI Standards is the UK’s National Standards Body. BSI provides independent, third-party certification of management systems. BSI is ASI Accredited

(RSPO-ACC-19) since 31/10/2014 with accredited office located at Kuala Lumpur, Malaysia and an office at Singapore, Jakarta, Bangkok and Australia which involve in RSPO Certification Program.

Assessment Methodology, Programme, Site Visits The objective of the assessment is to conduct a surveillance assessment and look for positive evidence to

ensure the elements of the scope of certification and the requirements of the management standard are effectively addressed by the organisation's management system and that the system is demonstrating the

ability to support the achievement of statutory, regulatory and contractual requirements and the

organisations specified objectives, as applicable with regard to the scope of the management standard, and to confirm the on-going achievement and applicability of the forward strategic plan. Continuing

Assessment (Surveillance) was conducted from 14 – 18 June 2016.

The audit programme is included as Appendix D. The approach to the audit was to treat the mill

and its supply base as an RSPO Certification Unit. Mill was audited together with the sample estates. A range of environmental and social factors were covered. This includes consideration of topography,

palm age, proximity to areas with HCVs, declared conservation areas and local communities.

The methodology for collection of objective evidence included physical site inspections, observation of tasks and processes, interviews of staff, workers and their families and external stakeholders, review of

documentation and monitoring data. RSPO P&C 2013, Generic Standard was used as Checklists and

questionnaires were used to guide the collection of information to assess compliance. The comments made by external stakeholders were also taken into account in the assessment.

Stakeholder consultation involved internal and external stakeholders. External stakeholders were

contacted by visiting to the villages convenient to them to discuss Umbul Mas Wisesa POM Certification

Unit’s environmental and social performance.

Meetings were held with stakeholders to seek their views on the performance of the company with respect to the RSPO requirements and aspects where they considered that improvements could be

made. At the start of each meeting, the interviewer explained the purpose of the audit followed by an evaluation of the relationship between the stakeholder and the company before discussions

proceeded. The interviewer recorded comments made by stakeholders and these have been

incorporated into the assessment findings.

Structured worker interviews with male and female workers and staff were held in private at the workplace in the mill and the estates. Fieldworkers were interviewed informally in small groups in the

field. In addition, the wives of workers and staff were interviewed in informal group meetings at their

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housing. Separate visits were made to each of the local communities to meet with the village head and

residents. Company officials were not present at any of

Internal or external stakeholder interviews. A list of Stakeholders contacted is included as Appendix E.

The assessment findings for the recertification are detailed in Section 3.3.

This report is structured to provide a summary of assessment finding as attached in the Appendix A. The assessment was based on random samples and therefore nonconformities may exist

that have not been identified.

This report was internally reviewed by Mr. Mohd. Hafiz Mat Hussain (He is one of the BSI Qualified RSPO Lead Auditor and Internal Reviewer).

The following table would be used to identify the locations to be audited each year in the 5 year cycle

Name (Mill / Supply Base) Year 1

(12/2012)

Year 2

(06/2013)

Year 3

(06/2014)

Year 4

(06/2015)

Year 5

(06/2016)

Tungkal Ulu POM x x x x x

Tungkal Ulu Estate x x x x x

Scheme smallholders x x x x x

Tentative Date of Next Visit: 01/06/2017

Total No. of Mandays: 14 Mandays

BSI Assessment Team comprises of:

Haeruddin – Assessor (Lead Auditor) He holds Bachelor Degree in Forest Management, graduated from Hasanuddin University on 1994. He has

16 years of work experience in forest concession, forestry industry and the latest is within Oil Palm

Plantation in Indonesia. He experiences as auditor for several sustainability standard including FSC, UTZ, Organic Farming, 4C, ISPO and RSPO. He completed the ISO 9001 Lead Auditor Course; ISPO Lead

Auditor endorsed Course, RSPO Lead Auditor Course, and also completed ISCC, RSPO SCCS, RSPO RED course, etc. He had been involved in RSPO auditing since November 2010 in more than various

companies in Malaysia, Thailand and Indonesia. During this assessment, he assessed on the aspects of

legal and estate best practices and RSPO SCCS for Mill.

Nanang Mualib - Team Member He graduated from Bogor Agriculture University on 1999, Forestry Faculty. He involved in RSPO

certification since 2010 as a team member covering assessment against RSPO P&C in Indonesia. He

completed the ISO 9001 Lead Auditor Course, Technical Training of HCV Assessment; ISPO Lead Auditor endorsed Course. During this assessment, he assessed on the aspects of social, stakeholder consultation

and smallholders.

Bukti Bagja – Team Member He graduated from Bogor Agriculture University on 2000, Forestry Faculty and from University of

Indonesia majoring in Environmental Sains on 2011. He involved in RSPO certification since 2010 as a

team member covering assessment against RSPO P&C in Indonesia and Malaysia. He completed the ISO 9001 Lead Auditor Course, ISPO Lead Auditor endorsed Course, RSPO Lead Auditor Course, AMDAL A and

B Course. During this assessment, he assessed on the aspects of OHS and EMS.

Accompanying person: None

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Section 3 Assessment Findings

3.1. Details of audit results are provided in the following Appendix:

☒ RSPO P&C 2013 Summary of the Assessment – Appendix A

☒ PT. Inti Indosawit Subur Time Bound Plan – Appendix B

☒ RSPO Supply Chain Certification Assessment – Appendix F

3.2. Progress against Time Bound Plan

PT Inti Indosawit Subur demonstrates a challenging time bound plan to certify its entire mill and supply bases, there is no change of time bound plan. Audit team found that the company has strong

commitment to implemet time bound plan and comply with the time bound plan.

BSI also assessed the requirement for partial certification and concluded that:

1. There are no unresolved significant land disputes. 2. No replacement of primary forest or loss of HCV. New land acquisition follows the RSPO NPP

process, including public notification of new planting. 3. No labour disputes that are not being resolved through an agreed process.

4. No evidence of noncompliance with law noted.

3.3. Details of findings

During this surveillance assessment (ASA-4) there was found 2 Major NC, 5 Minor NCs and 3 Observations were identified:

Non-Conformity

NCR #

Description Category (Major/Minor)

1338577M2 RSPO Generic Standard 2013 - Indicator 4.7.3

Observed during field visit at Tungkal Ulu Mill that a number of workers at

Tungkal Ulu Mill do not use appropriate and adequate PPE such as: - workers that work in high place of WWTP station does not use safety

harness - Engine Room operator (Mr. PM) does not use earplug / ear muff when

work in work place high noise level

- Boiler operator (Mr. AS) does not use earplug / ear muff when work in work place high noise level.

- Based on field visit in Kelompok Tani (Farmer group) 26 - Timbul Jaya; plot no. 1601, it was found workers who conduct pruning without

appropriate PPE.

Corrective Action:

Tungkal Ulu Mill has been able to show the eviden to proof: - Corrective action has been created in the form of: Corrective Action

Plan RSPO ASA4 PT IIS - Tungkal Ulu No.8160894. - Log book breefing pagi dated 7, 15, 21, 22, 25 and 27 July 2016: the

mandatory use of PPE

- Monitoring the use of personal protective equipment (PPE); the checks carried out in person, for example, in July 2016 on behalf of Mr. PM as

engine operator (PPE used engine room: Ear muff, helmets, safety shoes), Mr.HS as opr. boiler (PPE used: Helmet, Ear plug, gloves and

safety shoes) - Procurement and handover APD: Inventory: ear muff, while other PPE

is given to each employee, the last PPE was given to the boiler

operator dated 15 June 2016, such as: ear plugs, engine room, dated

Major

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20 June 2016: ear muff. Body Harnnes on 23 May 2016 as much 4 units.

- At the time of the verification audit visit dated 12 August 2016 to the engine room and the location of WWTP, it can be seen that the

employee / operator has to use appropriate PPE (enggine operator:

ear muff and ear plugs). - The Company also issued Memorandum no. 115/MI-

PTU/MEMO/07/2016, dated 1 July 2016; regarding the use of PPE shall be signed by the Mill Manager (Mr. Pirma Hutagaol) and instantly

disseminated on 1 July 2016, attended by all employees in accordance with the work shifts and can be shown to absenteeism (list of

attendence) dated 25 July 2016 which was attended by 26 employees.

With the memorandum issued it if in the future there are employees who do not use of PPE will be sanctioned.

Plasma:

- Handover of personal protective equipment KUD Karya Kita, Farmers

Group Timbul Jaya, on 29 June 2016, such as: helmet, gloves, glasses and sarung Egrek.

- Training on the use of personal protective equipment KUD Karya Kita, on 29 June 2016 in the office of KUD SP-3, was attended by 16

employees of harvesting and pruning, the attendence list can be shown.

- Monitoring / feasibility checklist of personal protective equipment is

conducted every month, from January - August 2016 - HIRAC harvest work and bud / pruning use of of PPE: Rubber boots,

glasses, helmets and sarung Egrek. - Based on the interview on 11 August 2016 with several employees

KUD Karya Kita (Sobirin, Basir, Anang and Tukiat), that after training

on the use of PPE on 29 June 2016, has understood the importance of using of PPE to avoid workplace accidents

This Major NC was closed on 15/08/2016

1207373N3 RSPO P&C Generic 2013 indicator 4.6.10

Based on interview and field visit at KUD Karya Kita (KT. 10), it was found

that the parcel owner can not demonstrate knowledge on pesticide handling and proper disposed empty container pesticides.

Corrective Action:

- Training Use of Pesticides Limited, dated July 19, 2016, attended by 47

employees Inti and KUD, for example: in the name of H. Ahmad Aman,

Sakam, Pujadion, Supriyatna.

- Herbicide Training Limited dated July 19, 2016 performed by a team

KP3 Jambi Province in cooperation with PT Syngenta also attended from

the DNAs of Agriculture, Disbun and Jambi Provincial Health Office.

- The letter stating of employees KUD Karya Kita, Farmers Group Tandan

Mas, KTH 10, letter no. 01/KUD.KK/V/06/16, dated 16 July 2016 on

behalf of H. Ahmad Aman, that: spraying will be conducted by Team

TUS

This Major NC was closed out in 15/08/2016

Major

1338577N1 RSPO Generic Standar 2013 - indicator 2.1.3

Minor

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Scheme smallholders has been updated and evaluated list of regulation, however list update is not completed yet, several crucial regulations

related to agricultural practice are not available yet including review on its compliance, such as: latest act regarding plantation, ministrial decree

regarding plantation business permit, government regulation regarding

environment and waste management, etc.

1338577N2 RSPO Generic Standard 2013 - Indicator 2.2.2

The legal boundary is monitored regularly every 6 (six) month as

documented in “Laporan Pemeriksaan dan Perawatan Patok Batas PT IIS-

Jambi”. Based on field visit in Afdeling 5, it was found only 2 legal boundaries instead 4 sampling taken.

Minor


The company has recorded Paraquat usage monthly and yearly basis,

based on document review, it was seen Paraquat usage yearly series, such as: 2009 (664 liters), 2010 (1,307 liters), 2011 (259 liters), 2012 (298

liters), 2013 (180 liters), 2014 (172 liters), 2015 (684 litres), up to May 2016 (1.089 liters), it was seen that increasing Paraquat usage, however

no any plan to eliminate.

Minor


Sighted during field visit at Tungkal Ulum Mill that several work places are

not equipped with appropriate and adequate safety such as: - First aid box in workshop is not completed with appropriate and

standard item - Eye washer in temporary hazardous storage is not ready to use

Minor

1338577N4 RSPO generic Standard 2013 - Indicator 4.7.6

Company has not planned medical surveillance for all workers into health

and safety program

Minor

There are 3 Observation/opportunities for improvements were identified during this surveillance audit

(ASA-4):

Observation

OBS #

Description

1 RSPO Generic Standard 2013 - Indicator 6.5.3

The company needs to consider upgrading school bus. Currently, the company providing

modified truck for senior high school student and school bus over capacity for elementary and

junior high school student.


1. Observed that status of some workers in Tungkal Ulu mill are still “temporary daily worker

(Pekerja Harian Lepas / PHL)”, even though they have been woring in processing unit

which is categorized as fix job for more than three consecutive months with more than 21 working days in a month. This is potentially against current applicable law particularly Act

number 13 year 2003 concerning Workforce article 59 and Decree of Workforce Minister number 100 year 2004 regarding Implementation of temporary Work Agreement

(Perjanjian Kerja Waktu Tertentu) article 10. Nevertheless, Management of Tungkal Ulu

Mill shows evidence that the PHL workers are currently in progress of recruitment as permanent worker. A proposal for recruitment has been sent by Mil Manager to

management of PT. IIS on 9th March 2016 concerning promotion of PHL workers to

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become SKU H workers. Positive progress of this matter is important and will be subject of observation in the upcoming audit stage.

2. The company need to consider evaluate contract for loose fruit collector


The company needs to consider improving RKL - RPL report quality by complete evidence of participative monitoring on social perception.

Positive Findings

PF #

Description

1 The company continuous implementing improvement in some areas as detailed in “Kaizen Program” such as efficiency fertilizer usage with modified stacking frond.

2 A biogass power plant is under construction in 2016 and it will be commenced in 2017.

Issues Raised by Stakeholders (data masih di Pak Nanang)

Issues

#

Description

Social Issues: - Agreement between company any contractor is available and signed by both parties.

- The company has conducted meeting with labour union and Gender Committee regularly.

- No child labour was noted. - In general, communication with the company and stakeholder is doing well.

- The company has been providing the infrastructure that aims to improve the welfare of employees, for example, housing, electricity, clean water, health facilities, educational

facilities, etc. - Plasma FFB price determined by the purchase price set by the Pricing Committee TBS Jambi

province.

Management Response: Positive comments

Auditor Team Findings:

Positive comments

2 Labour issues: - PT IIS has conducted a briefing related to use of personal protective equipment (PPE) at

job site for their contractor’s workers, also provided PPE for them. - All workers had been included in Helath insurance (BPJS Kesehatan) and Social Insurance

(BPJS Ketenagakerjaan) - The company has paid their workers based on national regulation for minimum wages.

- The company has completed medical check up for their workers who are worked in risk

areas, such handling and applied chemicals and high risk station, such as for sprying, fertilizer, chemical store man, genset station, etc at least twice a year.

- All workers have contract. - All operators who work in special station have been permit/SIO, e.g. welding workers,

generator operator, etc.

- The company has formed Cooperation Institution (LKS) bipartite and has been registered to the Department of Labor Tanjung Jabung district.

- The company has conducted training appropriately to their workers. - The company has been handling cases of work accidents is well related to reporting and

claims handling employment BPJS for their workers. - In the period of the past year, there is no case of an industrial dispute that came to the

court of the Industrial Dispute (if any, will be solved by the bipartite level and Mediation).

Management Response: Positive comments


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Positive comments

3 Environmental issues:

- There are no reports were coming from any party, including the surrounding communities

related to environmental pollution caused by the operations of PT IIS - Tungkal Ulu. - The company has been managing hazardous waste and has been permission temporary

storage of hazardous waste in accordance with applicable laws and regulations.

Management Response:

Positive comment

Auditor Team Findings: Potive comment

4 Legal issues:

-

Management Response:

-

Auditor Team Findings: -

5 Operational issues:

- All area of HGU of PT IIS-Tungkal Ulu in accordance with the Spatial Tanjung Jabung as a plantation crop cultivation area.

- No any land disputes

Management Response: Positive comment


Positive comment

1.4. Status of nonconformities and observation previously identified.

Non-Conformity

NCR #

Description Category

(Major/

Minor)

1202625N1

Requirements: RSPO P & C Generic Standard, 2013 - Indicator 3.1.2

Scheme smallholder cannot demonstrate yearly review for the replanting

programme.

Action Taken: The scheme smallholders has reviewed the replanting programme; replanting

planned forward to 2019 in KUD Sawit Kita due to some of members still has installment in Bank, the members don’t have reserve money for replanting and still

negotiated with Bank. Replanting program in KUD Harapan Jaya: in 2022 (400 ha),

2023 (392 ha) and 2024 (338 ha).

This NC was closed out on 17/06/2016

Minor

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1202625N2 Requirements: RSPO P & C Generic Standard, 2013 - Indicator 4.3.3 At a scheme smallholder cooperative, road maintenance programme was not

available. Based on field visit, the road was in poor condition.

Action Taken:

Road maintenance program is documented in “Program Perbaikan Jalan – KUD” e.g. Road maintenance in KUD Karya Kita; Road maintenance for each Kelompok

Tani (Farmer Group is detailed monthly, for 2015 (89,020 metres) achieve 100% in 2015. Road maintenance in 2016, planned 89,030 metres; actual 23,100 metres up

to April 2016.

Based on field visit, it was found that road maintenance programme is implemented

and good road condition.


Minor

1202625N3

Requirements: RSPO P & C Generic Standard, 2013 - Indicator 4.6.10 A number of scheme smallholders were not able to demonstrated knowledge on

proper disposal of empty pesticide container.

Action Taken: Based on interview with the members, it was found that the company has

conducted awereness to the members for disposed of waste material, it was seen

during field visit in sample plot, no any found waste material, such as inner bag fertilizer.


Minor

1202625N4

Requirements: RSPO P & C Generic Standard, 2013 - Indicator 4.8.2

Training records at scheme smallholder did not demonstrate progress and updates.

Action Taken: Scheme Smallholders has created training program in 2015 and 2016, such as:

1. Sustainability Awarenees training for RSPO, ISPO and ISSC

2. HCV Training 3. Basic Safety/K3.

4. Basic Fire 5. First Aider

6. Penanganan limbah B3 dan bahan kimia

7. Safety Use herbisida dan chemical. 8. Program pelatihan teknis and managerial

Progress training based on training plan in 2016 is updated, e.g. in KUD Karya Kita

- Petani plasma telah dilatih pestisida terbatas pada tanggal 27th June 2015 was

conducted by PT. IIS, attended 20 members. - Pelatihan K3 on 16th February 2016 attended 14 members.

- Pelatihan Panen dan APD, dated 26th March 2016, attended 17 members. - Pelatihan Pupuk Berimbang, dated 23rd May 2016, attended 30 members.

- Pelatihan Pengendalian Hama dan penyakit, dated 26th September 2015, attended 23 members.


Minor

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Observation

OBS #

Description

1 RSPO P & C Generic Standard, 2013 - Indicator 2.1.3 Company and scheme smallholders need considered to update evaluation of regulation clearly.

Action Taken:

Scheme smallholders has been updated and evaluated list of regulation, however list update is

not completed yet, several crucial regulations related to agricultural practice are not available yet including review on its compliance, such as: latest act regarding plantation, ministrial decree

regarding plantation business permit, governement regulation regarding environment and waste managent, etc. The auditor concludes upgrade this observation into Minor NC.

2 RSPO P & C Generic Standard, 2013 - Indicator 2.2.1

Having proof of land ownership (land certificates) in place; the scheme smallholders (KUD Sawit Kita and KUD Karya Jaya) need to update the information on changes in land ownership after

March 2015.

Action taken:

Land owner certificate has been update the information of changes in land ownership, in list of Plasma members, registered the initial owner and land currently land owner.


PT Inti Indosawit Subur - Tungkal Ulu has provided insurance for all workers. Company needs to ensure all workers including loose fruit collector has been registered with insurance.

Action taken:

PT Inti Indosawit Subur - Tungkal Ulu has provided insurance for all workers. Company needs to ensure all workers including loose fruit collector has been registered with insurance.


Based on interview with daily worker - Pekerja Harian Lepas (PHL); it is known that work agreement has been signed. The daily worker would see improve opportunity to get access to

copy of work agreement.

Action Taken:

Based on interview with PHL workers, labour union and result of document verification shown that the company has submitted a copy of “Surat Perjanjian Kerja” to workers of PHL, Eg:

a. Surat Perjanjian Kerja Harian Lepas No. 62/SKPHL/KTU/IIS/I/2016 dated 1 January 2016,

name Mrs. Suratmi as fertilizer worker. b. Surat Perjanjian Kerja Harian Lepas No. 09/SKPHL/KTU/IIS/I/2016 dated 1 January 2016,

name Mr. Amaq Rudi as harvester. c. Surat Perjanjian Kerja Harian Lepas No. 53/SKPHL/KTU/HS/I/2016 dated 1 January 2016

name Mr. Al Hikmah as worker of treatment plants.

3.5. Status of Non Conformities

Reference Category Issued Closed

A824193/1 Major NC 14/12/2012 10/02/2013

A824193/1 Minor NC 14/12/2012 30/06/2014

A824193/3 Minor NC 14/12/2012 30/06/2014

A824193/2 Minor NC 14/12/2012 30/06/2014

1055357M17 Major NC 30/06/2014 25/08/2014

1055357N15 Minor NC 30/06/2014 16/08/2015

1055357N6 Minor NC 30/06/2014 23/06/2015

1055357N16 Minor NC 30/06/2014 23/06/2015

1055357N18 Minor NC 30/06/2014 23/06/2015

1202625M1 Major NC 23/06/2015 16/08/2015

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Assessment Conclusion and Recommendation The auditors conclude that Perlabian Palm Oil Mill and its supply base are complying with the RSPO

certification system 2007, RSPO Generic Standard 2013 and RSPO SCCS 2014.

Its recommend to extend the RSPO certificate for Tungkal Ulu Palm Oil Mill and and its supply base

Acknowledgement of Assessment Findings by PT Inti Indosawit Subur – Tungkal Ulu POM

Report Prepared by

Name: Mr. Welly Pardede Name: Haeruddin

Company name: PT. Inti Indosawit Subur

Company name: PT. BSI Indonesia

Title: Head of Environment and Sustainability Title: Lead Auditor

Signature:

Date: 16/08/2016

Signature:

Date: 16/08/2016

1202625M2 Major NC 23/06/2015 16/08/2015

1202625M3 Major NC 23/06/2015 16/08/2015

1202625M4 Major NC 23/06/2015 16/08/2015

1202625N1 Minor NC 23/06/2015 17/06/2016

1202625N2 Minor NC 23/06/2015 17/06/2016

1202625N3 Minor NC 23/06/2015 17/06/2016

1202625N4 Minor NC 23/06/2015 17/06/2016

1338577M2 Major NC 18/06/2016 15/08/2016

1207373N3 Major NC 18/06/2016 15/08/2016

1338577N1 Minor NC 18/06/2016 “open”

1338577N2 Minor NC 18/06/2016 “open”

1338577N3 Minor NC 18/06/2016 “open”

1338577N5 Minor NC 18/06/2016 “open”

1338577N4 Minor NC 18/06/2016 “open”

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Appendix “A”

Summary of Finding

Criterion / Indicator Assessment Findings Compliance

PRINCIPLE 1: COMMITMENT TO TRANSPARENCY

Criterion 1.1:

Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making.

1.1.1 There shall be evidence that growers and

millers provide adequate information on (environmental, social and/or legal) issues

relevant to RSPO Criteria to relevant stakeholders for effective participation in

decision making.

- Minor compliance -

Estate and Mill:

Company has a mechanism to provide information, as per procedure “Penanganan Permintaan Informasi Stakeholder” No.AA-GL-5008.1-R1, dated 22nd August 2011. The procedure explains

mechanism to receive and respond to information/inquiry from stakeholders. The response time sets to a maximum 14 working days since the inquiry received. Information request/inquiry

accepted through verbal and/or written request – and recorded by Public Relation (Humas). Response provided as per mechanism.

Scheme smallholders: Cooperatives have a procedure to handle information request and provision of information to

relevant stakeholders. There is a list of information available for public – consist of 14 documents such as cooperative business plan, legal documents, health and safety plan, etc.

Yes

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1.1.2 Records of requests for information and

responses shall be maintained.

- Major compliance -

Estate and Mill:

Company maintains records of request for information and responses under “Logbook Tanggapan

Informasi”. Up to May 2015, 3 types of information supplied to relevant stakeholders. Sampler: Hazardous waste management report “Laporan Limbah B3” period January–March 2015 through

letter No.042/MI/PTU/Ekt/04/2015 dated 17th April 2015 sent for “BLHD kabupaten Tanjung Jabung Barat, BLHD Provinsi Jambi , PPLH Regional Sumatera dan Kementerian Lingkungan Hidup”. (Lihat

Pak Nanang)

Scheme smallholders:

KUD Harapan Jaya: Information request is recorded in “Buku Masuk - Keluar”; up to May 2015, 3 information requests

received, respond provided in timely manner. Sample: Letter from “PT. Inti Indosawit Subur” dated 13/01/2016 related FFB pricing.

KUD. Karya Jaya: KUD Karya Jaya recorded the information request under “Buku Permintaan Tanggapan dan

Informasi KUD Karya Jaya”; up to May 2015, 7 information requests received, respond provided in timely manner. Sample: Letter from “Dinas Koperasi dan Usaha Mikro, Kecil dan Menengah

Kabupaten Tanjung Jabung Barat No.518/107/DKUMKM/III/2015” dated 10th March 2015 related to

partnership issue inventory. This has been responded through KUD Karya Jaya through letter No.518/KUD-KJ/BH/III/2015 dated 15th March 2015.

Yes

Criterion 1.2: Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative

environmental or social outcomes.

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1.2.1 Publicly available documents shall include, but

are not necessarily limited to:

Land titles/user rights (Criterion 2.2);

Occupational health and safety plans

(Criterion 4.7); Plans and impact assessments relating to

environmental and social impacts (Criteria

5.1, 6.1, 7.1 and 7.8); HCV documentation (Criteria 5.2 and 7.3);

Pollution prevention and reduction plans

(Criterion 5.6);

Details of complaints and grievances

(Criterion 6.3); Negotiation procedures (Criterion 6.4);

Continual improvement plans (Criterion

8.1);

Public summary of certification

assessment report;

Human Rights Policy (Criterion 6.13).

- Major compliance –

Estate and Mill:

Company has a procedure for information request handling and information provision. There is a list

of information available for public, dated 12th May 2015. The list comprise of 32 documents, such as legal documents (Izin Lokasi, Izin Prinsip, IPKH, SK HGU, and land certificate), company policy

covering respect to human rights, AMDAL/SEIA document, environmental management plan, environmental report, HCV report, health and safety programme, continual improvement plan,

negotiation procedures, FFB price information, medical check up result, etc.


Cooperatives have a procedure to handle information request and provision of information to relevant stakeholders. There is a list of information available for public – consist of 14 documents

such as cooperative business plan, legal documents, health and safety plan, etc.

Yes

Criterion 1.3:

Growers and millers commit to ethical conduct in all business operations and transactions.

1.3.1 There shall be a written policy committing to a

code of ethical conduct and integrity in all operations and transactions, which shall be

documented and communicated to all levels of

the workforce and operations.


Estate and Mill:

Company is able to shows company policy - Kebijakan Perusahaan signed 1st December 2014. The policy mentioned commitment to uphold code of ethical conduct. Furthermore, based on interview

with sampled workers, they have received communication/dissemination of such policy.

Communication of code of ethical conduct carried out, e.g. on 6th January 2016, attended 126 estate’s workforce. The company also erected sign board/Baliho in public area in estate.


KUDs have “Kebijakan Koperasi” dated 1st January 2015: “berkomitment berperilaku etis dalam

kepengurusan koperasi pada seluruh transaksi dan operasi bisnis, pelarangan segala bentuk korupsi, penyuapan, dan penipuan dalam penggunaan danadan sumberdaya koperasi”

Yes

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PRINCIPLE 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

Criterion 2.1

There is compliance with all applicable local, national and ratified international laws and regulations.

2.1.1 Evidence of compliance with relevant legal requirements shall be available.


Estate and Mill: PT IIS – Tungkal Ulu demonstrate a valid land ownership covering:

1. Izin Prinsip (Principle permit) No. KB.320/859/ Mentan/XI/1983, dated 7th November 1983, approved by Agriculture Ministry for PT. IIS – PIR Trans (+ 65,000 ha) and Izin Lokasi No.746,

year 2006 for 1,111 ha Kecamatan Merlung, Tanjung Jabung Barat, issued by Bupati Tanjung Jabung Barat.

2. Izin Usaha Perkebunan – Surat Pendaftaran Usaha Perkebunan/ SPUP (Plantation operational

permit) No.187/Mentanhut/VII/2000, dated 3rd November 2000 (+ 4,759.20 ha). 3. Izin Usaha Perkebunan Budidaya/IUP B (Plantation operational permit) No.625, year 2008,

dated 26th September 2008 (+ 1,111 ha). 4. Forest area release through “Surat Keputusan Menteri Kehutanan No.494/Kpts-II/1991 tentang

Pelepasan areal hutan seluas 17,500 Ha terletak di Kelompok Hutan S. Lampisi-S. Palik-palik

Kabupaten Dati II Tanjung Jabung dan Seluas 9,356Ha terletak di Kelompok Hutan S. Kehidupan-S. Singoan Kabupaten Batanghari, Provinsi Jambi untuk Usaha Budidaya

perkebunan dengan pola PIR-TRANS atas nama PT Inti Indosawit Subur” dated 7th August 1991.

5. Renewal HGU No.61/HGU/BPN/2005, dated 2nd June 2005, approved by BPN (3,503.02 ha). 6. HGU No.82/HGU/BPN RI/2014, dated 15th May 2014 (1,053.34 ha).

7. Land Application Permit: No.503.8/01/KPPT/2012 dated 17/09/2013 valid for 3 years.

8. Surface water use permit No.503.30/01/KPPT/2011, dated 5/7/2011. 9. Pesticide Store permit No.560/386/4.3/ DSTKT.

10. Izin operational pabrik (Mill operation permit) No.532/T/Industri/2005. 11. AMDAL (SEIA) No.014/ANDAL/RKL-RPL/BA/95.

12. Revised SEIA (AMDAL) No.309, year 2009, dated 6th June 2009, for 4,614.02 ha, consist of

3,503.02 ha (SK. Gubernur Kepala Daerah Tingkat I Propinsi Jambi No.342/1987, dated 19th June 1987) and 1,111 ha (SK. Bupati Tanjung Jabung Barat No.746, year 2006, dated 20th

October 2006 tentang izin lokasi untuk keperluan pembangunan perkebunan kelapa sawit atas nama PT. IIS, serta 10,277 ha lahan plasma dan kapasitas pabrik kelapa sawit 60 ton

TBS/jam).

13. Izin Pemanfaatan Air Limbah (Land application permit).No.503.8/01/KPPT/ 2012, dated 17th September 2013, valid until 17th September 2016.

Yes

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14. Izin Pemanfaatan Air Permukaan (Surface water usage permit) No.503.30/01/KPPT/ 2011,

dated 5th July 2011, valid until 5th July 2016.

Update Izin penyimpanan sementara limbah B3 (Hazardous waste storage permit) No.660/487/IX/BLHD/2014, dated 29th September 2014 (valid until 28 September 2019.

Observed that Tungkal Ulu Mill has evidence of compliance with relevant requirements, as shown

with the following records of mill licenses and permits:

Weighbridge permit, register number 743/Diperindag/Bpk/IV/16, valid until April 2017 1. Land applicaiton permit, register number 503.8/01/KPPT/2011, dated 17th September 2013,

valid until 17 September 2016. 2. Valid sterilizer permit (4 units), latest inspection by local authorities on July 9, 2016

3. Valid Boiler permit (bioler 1, 2 and 3), latest inspection by local authorities on May 11, 2016 4. Compressor permit (3 units), latest inspection by local authorities on July 9, 2015

5. Generator permit (2 units), latest inspection by local authorities on July 9, 2015

6. Steam generator permit (2 units), latest inspection by local authorities on July 9, 2015 7. Electrical installation permit, latest inspection by local authorities on July 9, 2015

8. Steam generator permit (1), latest inspection by local authorities on July 9, 2015 Based on document legal permit review, all those mill permit is valid. Others permits are available

and it has been verified during audit.

Original records of those permits available in mills and well maintanied.

Scheme Smallholders: 1. KUD Manunggal Jaya

a. Contract between Scheme and PT. IIS no. 01/SP/TU/08-1996 b. Akte Pendirian koperasi No.967/BH/XV, dated 17th October 1991, endorsed by

“Departemen Koperasi – Kantor Wilayah Departemen Koperasi Propinsi Jambi No.

57/KPTS/KWK.5/VIII/1991, dated 18th October 1991, Akte Perubahan Anggaran Dasar No.312/BH/PAD/KWK.5/VIII/1996, dated 2nd July 1996.

c. Annual Member meeting (Rapat Anggota Tahunan/RAT) is conducted annually, the last RAT was conducted in 2014, for 2014 still in progress due to audit investigation.

d. Tax registration No.01.535.702.3-334.000;

e. Tanda Daftar Perusahaan (TDP) no. 050126400247, dated 25th November 2011, valid until 25th November 2016.

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2. KUD Harapan Jaya

a. Akte Pendirian koperasi No.967/BH/XV, dated 17th October 1991, endorsed by

“Departemen Koperasi – Kantor Wilayah Departemen Koperasi Propinsi Jambi No. 57/KPTS/KWK.5/VIII/1991, dated 18th October 1991, Akte Perubahan Anggaran Dasar

No.312/BH/PAD/KWK.5/VIII/1996, dated 2nd July 1996. b. Annual Member meeting (Rapat Anggota Tahunan/RAT) is conducted annually, the last RAT

was conducted in 2014, for 2014 still in progress due to audit investigation.

c. Tax registration No.01.535.702.3-334.000; d. Tanda Daftar Perusahaan (TDP) no. 050126400247, dated 25th November 2011, valid until

25th November 2

3. KUD Karya Kita a. Contract between Scheme and PT. IIS no. 23/SP/TU/IX/1995

b. Akte Pendirian koperasi No.975/BH/XV/1993, endorsed by “Departemen Koperasi – Kantor

Wilayah Departemen Koperasi Propinsi Jambi No. 57/KPTS/KWK.5/VIII/1991, dated 18th October 1991, Akte Perubahan Anggaran Dasar No.312/BH/PAD/KWK.5/VIII/1996, dated

2nd July 1996. c. Annual Member meeting (Rapat Anggota Tahunan/RAT) is conducted annually, the last RAT

was conducted in 2014, for 2014 still in progress due to audit investigation.

d. Tax registration No.01.535.702.3-334.000; e. Tanda Daftar Perusahaan (TDP) no. 050126400247, dated 25th November 2011, valid until

25th November 2

Yes

2.1.2 A documented system, which includes written

information on legal requirements, shall be

maintained.

- Minor compliance –

Estate and Mill:

List of laws are avalaible and being evaluated regularly. Last updated on 01st June 2016.

Scheme Smallholdres:

Summary of permits and licenses checked and recorded in regulation record “Perizinan KUD”, updated 5th January 2015.

Yes

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2.1.3 A mechanism for ensuring compliance shall be

implemented.


Estate and Mill:

List of laws are avalaible and being evaluated regularly, last updated on 1st June 2016, e.g.

Peraturan pemerintah No. 27/year 2014 tentang Izin lingkungan, Permentan No. 11/2015 tentang ISPO, Permenaker no. 9/year 2016 tentang Kesehatan dan Keselamatan Kerja, Peraturan Badan

Penyelenggara Jaminan Sosial Ketenagakerjaan no. 7/year 2015.

Scheme Smallholders:

Scheme smallholders has been updated and evaluated list of regulation, however list update is not completed yet, several crucial regulations related to agricultural practice are not available yet

including review on its compliance, such as: latest act regarding plantation, ministrial decree regarding plantation business permit, government regulation regarding environment and waste

management, etc. (Minor NC was raised)

No

2.1.4 A system for tracking any changes in the law shall be implemented.


Estate and Mill: Legal requirement-evaluation and fulfilment mechanism regulated under “SOP Pemenuhan

Peraturan Perundang-undangan dan Perubahannya” (No. SOP; AA-GL-5001.1-RO) dated 5th December 2009. The procedure explains the stages for evaluation applicable legal requirements,

person in charge for evaluation and ensures implementation of such requirement.


Scheme manager will inform the scheme smallholders (cooperative) if there is any a change or amendment in laws and regulations. Scheme manager conduct meetings with the cooperative

members to ensure compliance.

Yes

Criterion 2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights.

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2.2.1 Documents showing legal ownership or lease,

history of land tenure and the actual legal use

of the land shall be available.


Estate:

PT IIS demonstrate a valid land ownership covering:

1. Renewal HGU No.61/HGU/BPN/2005, dated 2nd June 2005, approved by BPN “tentang Pemberian HGU atas nama PT Inti Indosawit Subur seluas 3,503.02 Ha” dated 2nd June 2005.

2. “Surat Keputusan Kepala BPN Pusat No.82/HGU/BPN RI/2014, dated 15th May 2014 (1,053.34 ha).

Scheme smallholders: All the land of farmers is the government program (PIR–Trans) appropriate with “Keputusan

Menteri Transmigrasi” No. Kep.91 / MEN / 1991 dated July 29, 1991 on the Implementation of Transmigration PIR Trans permit to PT Inti Indosawit Subur with oil palm in Tungkal Location Ulu,

Tanjung Jabung and location Muarabulian, Batanghari regency, Jambi Province. Land that is prospective acreage plasma has been removed from a forest area in accordance with the Ministerial

Decree No. 494 / Kpts-II / 1991 dated August 7, 1991 on the release of forest area covering an

area of 17,000 hectares located in Forest Group S. Lampisi - S.-Palik Palik Regency Tanjung Jabung regency and covering an area of 9,356 hectares located in the forest group S. Life - S. Singoan

District Batang regency, Jambi province for the cultivation of plantations with Pir Trans Pattern on behalf of PT Inti Indosawit Subur.

Scheme smallholders able to demonstate a valid land title during audit, a copy of land title / Sertifikat Hak Milik (SHM) is available in Cooperative office. issued by BPN Tanjung Jabung

Regency, sampled land title (SHM) as evidence, e.g.

Sample taken:

Name SHM no. Ha Name SHM no. Ha

KUD Karya Kita KUD. Harapan Jaya

Abdul Aswad 614/1995 2.0096 Sarkawi 528/1997 2.0533

Suwaryo 502/1995 2.0066 Suparno 554/1997 2.0516

Supriyanto 551/1995 2.0462 Mawardi 553/1997 2.0125

Maimin 872/1996 2.0000 Bonijo 524/1997 2.0680

Herman P 1046/1997 2.6325 Tamuji 534/1997 2.0516

Icad Sinaga 1044/1997 2.5568 Sukro 1052/1997 2.0298

Mukhtar A Amin 1049/1997 1.7343 Biman 1055/1997 1.9890

Elon 590/1995 2,5510 Syamsul 1059/1997 2.0800

Soedadi 590/1995 2.0210 Supardi 1066/1997 2.2500

Syargawi 1042/1997 1.9188 Kemis 1065/1997 2.0460

Yes

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2.2.2 Legal boundaries shall be clearly demarcated

and visibly maintained.


Estate:

document of “Laporan Pemeriksaan dan Perawatan Patok Batas PT IIS-Jambi” No

002/LAP/KTU/SSL/02.3/XIII/2015, e.g: result of inspection for period July to December 2015 has conducted to inspection of 85 legal boundaries.

Based on field verification in afdeling 5 shown that 4 of the legal boundaries that be sampling

(Patok BPN No 17, 18, 19 and 20) only found 2 of legal boundaries (No 19 and 20), while 2 of legal

boundaries (No 17 and 18) had been missed during maintenance of trenches boundary (Minor NC raised)


The legal boundary pegs is available (concrete and/or wood), the members is known well the boundary each others and along the border put stacking frond as boundary

Based on result of interviews with local authorities in land and local communities, it was confirmed that no any land dispute issues.

No

2.2.3 Where there are or have been disputes,

additional proof of legal acquisition of title and evidence that fair compensation has been made

to previous owners and occupants shall be available, and that these have been accepted

with free, prior and informed consent (FPIC).


Estate and Schemesmallholders:

There is no land disputes and occupants was noted during audit

Yes

2.2.4 There shall be an absence of significant land conflict, unless requirements for acceptable

conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the

parties involved.


Estate and Schemesmallholders: There is no land disputes and occupants was noted during audit

Yes

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2.2.5 For any conflict or dispute over the land, the

extent of the disputed area shall be mapped

out in a participatory way with involvement of affected parties (including neighbouring

communities where applicable).


Estate and Schemesmallholders:

There is no land disputes and occupants was noted during audit

Yes

2.2.6 To avoid escalation of conflict, there shall be no evidence that palm oil operations have

instigated violence in maintaining peace and order in their current and planned operations.


Estate and Schemesmallholders: There is no land disputes and occupants was noted during audit

Yes

Criterion 2.3 Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent.

2.3.1 Maps of an appropriate scale showing the

extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be

developed through participatory mapping

involving affected parties (including neighbouring communities where applicable,

and relevant authorities).


Estate:

The plantation was as part of PIR-Trans program. The area developed along with the scheme smallholder – surrounding the plantation. There was no land compensation since area designation

was clean and clear. One of the stakeholder interviewed, head of Lubuk Terap village, there is no

land dispute reported from communities.

Scheme smallholders: Based on interview with cooperative member and smallholders, there is no land dispute in area of

KUD Sawit Kita, KUD Karya Jaya and KUD Panca Mukti. Each KUD has a mechanism to handle land conflict under Communication and Consultation Mechanism. The mechanism including participatory

mapping, under supervision from village authorities.

Yes

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2.3.2 Copies of negotiated agreements detailing the

process of free, prior and informed consent

(FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include:

a) Evidence that a plan has been developed through consultation and discussion with all

affected groups in the communities, and

that information has been provided to all affected groups, including information on

the steps that shall be taken to involve them in decision making;

b) Evidence that the company has respected communities’ decisions to give or withhold

their consent to the operation at the time

that this decision was taken; c) Evidence that the legal, economic,

environmental and social implications for permitting operations on their land have

been understood and accepted by affected

communities, including the implications for the legal status of their land at the expiry of

the company’s title, concession or lease on the land.


Estate:

The company has documented properly to all handling process of land dispute that conducted by

Humas division, such as: record of agreement negosiation process of land compensation between company and Tanjung Jabung Barat government. No any land disputes since 2012.


The cooperatives developed as part of PIR-Trans programme. The land was granted directly from government through “Keputusan Menteri Transmigrasi No. Kep.91/MEN/1991 tertanggal 29 Juli

1991 tentang Izin Pelaksanaan Transmigrasi PIR Trans kepada PT Inti Indosawit Subur dengan komoditas kelapa sawit di Lokasi Tungkal Ulu, Kabupaten Tanjung Jabung dan Lokasi Muara Bulian,

Kabupaten Batanghari, Provinsi Jambi”.

Members of the cooperative have been granted with land certificate. Based on interview with

schemesmallholders members and local government, there was no noted land dispute since this project started.

Yes

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2.3.3 All relevant information shall be available in

appropriate forms and languages, including

assessments of impacts, proposed benefit sharing, and legal arrangements.


Estate:

The company has documented properly to all handling process of land dispute that conducted by

Humas division, such as: record of agreement negosiation process of land compensation between company and Tanjung Jabung Barat government. No any land disputes since 2012.


The cooperatives developed as part of PIR-Trans programme. The land was granted directly from government through “Keputusan Menteri Transmigrasi No. Kep.91/MEN/1991 tertanggal 29 Juli

1991 tentang Izin Pelaksanaan Transmigrasi PIR Trans kepada PT Inti Indosawit Subur dengan komoditas kelapa sawit di Lokasi Tungkal Ulu, Kabupaten Tanjung Jabung dan Lokasi Muara Bulian,

Kabupaten Batanghari, Provinsi Jambi”.


schemesmallholders members and local government, there was no noted land dispute since this project started.

Yes

2.3.4 Evidence shall be available to show that

communities are represented through institutions or representatives of their own

choosing, including legal counsel.

- Major coimpliance -

Estate:

Communities are free to choose their representation. This is evident in the process detailed on dispute settlement as agreed per letter No.10/SSL-RO3/Ext-PT IIS/VI/12 dated 4th June 2012


The cooperatives developed as part of PIR-Trans programme. The land was granted directly from

government through “Keputusan Menteri Transmigrasi No. Kep.91/MEN/1991 tertanggal 29 Juli 1991 tentang Izin Pelaksanaan Transmigrasi PIR Trans kepada PT Inti Indosawit Subur dengan

komoditas kelapa sawit di Lokasi Tungkal Ulu, Kabupaten Tanjung Jabung dan Lokasi Muara Bulian, Kabupaten Batanghari, Provinsi Jambi”.


schemesmallholders members and local government, there was no noted land dispute since this

project started.

Yes

PRINCIPLE 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY

Criterion 3.1

There is an implemented management plan that aims to achieve long-term economic and financial viability.

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3.1.1 A business or management plan (minimum

three years) shall be documented that includes,

where appropriate, a business case for scheme smallholders.


Mill:

Observed that a mid term (5 years) business plan for Tungkal Ulu Mill available under document

“Business Plan of PT. IIS Group Tungkal Ulu – year 2020”. The business plan contains the following information:

- Actual processed FFB from year 2006 - 2016 (current), - Processed FFB projection year 2017, 2018, 2019, and 2020, projection based on actual

processed FFB production.

- OER and KER actual from 2007 and projection until 2019 - Production cost projection (Rupiah/tonne CPO)

E.g. - Projection year 2017: FFB production in estate (24.30 tonnes/ha) and smallholder (20.18

tonnes/ha); OER 22.95 %, KER: 5.65%, Cost Production: Rp 2,595,xxx / ton CPO - Projection year 2018: FFB production in estate (20.75 ton/ha) and Plasma (20.18 tonnes/ha);

OER 22.95 %, KER: 5.70%, Cost Production: Rp. xxxxx / ton CPO

- No projection of expansion found in the business plan

The existing figures and projection values are reviewed and evaluated annualy by management to adjust projection with actual performance. In general, the company still have good expectation on

the business sustainability, despite recent drought problem.

Estate:

Company demonstrated “Rencana Usaha PT Inti Indosawit Subur – Group Tungkal Ulu for 2007 - 2019

Year FFB Production

(Ton/ha/yr)

OER

(%)

Production cost

(Rp/ton CPO)

Replanting

Porogram (ha)

2011* 22.01 22.41

2012* 24.79 22.02

2013* 21.15 21.89

2014* 21.38 21.74

2015 (up to 03/2015) 21.38 22.73

2016 23.09 22.86 2,865,105 307

2017 21.94 22.95 2,595,833 607

2018 20.75 22.95 2,152,130 597

2019 16.98 610

The estimation based on actual production realization from 2007 - 2015. The estimation including OER average, KER average, Production cost (Rupiah/tonne CPO).

Yes

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Scheme smallholder:

PT IIS helps prepared 3 years production budget 2015 – 2017 for all smallholder members. This

information builds up for smallholder of PT IIS Tungkal Ulu, totalling 10,277 Ha. Production budget 2015 sets at 226,789 ton – productivity 22.07 ton/Ha. Production budget year 2016 sets at 227,413

ton – productivity 22.13 ton/Ha. Production budget year 2018 sets at 227,858 ton – productivity 22.17 ton/Ha.

KUD “Karya Kita” 3-year production budget for KUD Karya Kita (1,168 ha): projection 2016: 26,570 tonnes (22.75

tonnes/ha/year), 2017: 26,626 tonnes (22.79 tonnes/ha/year) and 2018: 26,662 tonnes (22.83 tonnes/ha/year).

KUD “Harapan Jaya”

3-year production budget for KUD Harapan Jaya (1,130 ha): projection 2016: 24,523 tonnes (21.70

tonnes/ha/year), 2017: 24,574 tonnes (21.79tonnes/ha/year) and 2018: 24,624 tonnes (21.79 tonnes/ha/year).

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3.1.2 An annual replanting programme projected for

a minimum of five years (but longer where

necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review,

shall be available. - Minor compliance –

Estate:

Tungkal Ulu:

Replanting program is documented in the budget plan. The budget plan state replanting in 2016 covering (307 Ha), 2017 (607 ha), 2018 (597 ha), 2019 (610 ha), 2020 (567 ha), 2021 (552 ha),

2022 (674 ha), 2023 (630 ha) and 2014 (252 ha).

The replanting detailed each block is documented in “Rencana Blok Replanting” and replanting map

is available.

There is adjustment in planting hectarage compare than previous program based on review of Plantation Head.

Company shows Memorandum No.01/HP/MEMO/FEB/13 from Head of Plantation dated 15th

February 2013. The memo defines strategy for replanting preparation and land clearing technique –

in order to mitigate Ganoderma and Phelinus infestation. For area high risk ganoderma: Topaz 45% : Socfindo 45% : Lonsum 5% : Dami 5%. For area low risk ganoderma: Topaz 70% : Socfindo 10%

: Lonsum 10% : Dami 10%. Scheme Smallholders:

Scheme smallholder: KUD Karya Kita:

Sheme Smallholders has replanting program as documented in “Jadwal Rencana Replanting”, The scheme smallholders has reviewed the replanting programme; replanting planned forward to

2019 in KUD Sawit Kita due to some of members still has installment in Bank, the members don’t have reserve money for replanting and still negotiated with Bank.

KUD Harapan Jaya: Sheme Smallholders has replanting program as documented in “Jadwal Rencana Replanting”,

The scheme smallholders has reviewed the replanting programme; replanting planned forward to 2019 in KUD Sawit Kita and 2022 in KUD Harapan Jaya due to some of members still has

installment in Bank, the members don’t have reserve money for replanting and still negotiated with

Bank.

Replanting program in KUD Harapan Jaya:in 2022 (400 ha), 2023 (392 ha) and 2024 (338 ha).

Yes

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PRINCIPLE 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS

Criterion 4.1

Operating procedures are appropriately documented, consistently implemented and monitored.

4.1.1

Standard Operating Procedures (SOPs) for estates and mills shall be documented.


Estate and Mill: The company has procedures from land preparation up to despatch CPO PK, such as:

1. SOP AA-APM-OP-1100.01. R1 (Seedling). 2. SOP AA-APM-OP-1100.02. R1 (SOP of Land Preparation).

3. SOP AA-APM-OP-1100.03. R1 (SOP of Roads & Bridges Construction and Maintenance). 4. SOP AA-APM-OP-1100.05. R1 (Soil & Water Conservation)

5. SOP AA-APM-OP-1100.06. R1 (Planting Legium Cover Crops)

6. SOP AA-APM-OP-1100.07-R1, last revision no. 02/HP/MEMO/FEB/13, (Planting). 7. SOP AA-APM-OP-1100.08. R1 (Weeding control)

8. SOP AA-APM-OP-1100.09. R1 (Festilization) 9. SOP AA-APM-OP-1100.10. R1 (Pests & Disease Control)

10. SOP AA-APM-OP-1100.11. R1 (Pesticide Control)

11. SOP AA-APM-OP-1100.14. R1 (Census) 12. SOP AA-APM-OP-1100.18. R1 (Harvesting)

13. SOP AA-APM-OP-1100.19. R1 (FFB Transport)

SOP of the processing in PKS from FFB Receiving up to despacth of CPK / PK (SOP AA-MPM-OP-1400.03-RI till SOP AA-MPM-OP-1400.14-RI).

PT Inti Indosawit Subur has a set of procedure for plantation operations; composed of procedure for land clearing, road network system, nursery, planting, fertilizer application, integrated weed

control, integrated pest management, up to harvesting. The procedures are complemented with work instructions detailing requirement of each activities. All of SOP are collated inside Agricultural

Policy Manual ASIAN AGRI Group dated 1st February 2013, consist of 20 types of SOP.

The estates operate in accordance with the Agricultural Policies. The mill operates in accordances

with the Standard Operating Procedures.

Estates: Agricultural Policies, first issue 1 August 2010, covers all aspects of oil palm plantation from

land clearing preparation up to harvesting and FFB evacuation.

Yes

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PT Inti Indosawit Subur has a set of procedure for mill/FFB processing operations. The procedure

comprise of FFB receiving and grading, FFB processing from receiving up to dispatch of CPO, as

well as maintenance of mill machineries. PT IIS is also demonstrates a set of specific procedures for supply chain in the mill. Standard Operating Procedures for Laboratory covering quality checks,

losses analysis and product standards. The mill revised Policy Manual was dated 26th August 2011. No any revision since 2014 up to now.

The procedure complemented with work instructions indicating specific parameter/requirement for each process/activities.

Document seen: Mill Policy Manual. Additional SOP for Supply Chain: Traceability AA-MPM-OP- 1400.17-R3, dated 23rd October 2013;



KUD/cooperative refers to Agricultural Policy Manual issued by PT IIS – Tungkal Ulu. The Manual comprise of seedling preparation, pest and disease control, fertilizer application, spraying, pest

control, IPM, harvesting, pruning, road maintenance and transport, and FFB harvesting

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4.1.2 A mechanism to check consistent

implementation of procedures shall be in place.


Mill:

Sighted master list of SOP for FFB processing in mill under “Mill Policy Manual”. The master list

provides list of all procedures applicable in mills, categorized into 16 categories of stations and process. E.g. procedures at Loading Ramp, Sterilizer, Press, etc.

For each station, sets of work instructions (WI) available derived from the SOP. The WI available in

Bahasa Indonesia and distibuted to all relevant workplace, as seen during ASA-4 file visit in all

stations.

To ensure implementation of SOPs and work instruction, two internal audits have been implemented annualy, namely:

- Internal audit on integrated sustainability (ISPO, RSPO, ISCC, and SMK3) which covers all aspects of sustainability practises in mills in accordance with applicable standard.

- VE (Visit Engineering) at least once in a year by appointed engineer.

Estate:

PT Inti Indosawit Subur has a mechanism to conduct internal audit. Standar Operating Procedures – Audit Internal No.SOP AA-SOP-ES-6001-R2 dated 15th August 2014.

Tungkal Ulu estate visited by plantation advisor annually, the last Agronomy Visit on 22 – 24 April 2015 conducted by Mr. Jhonson Situmorang.

Estate managers and each managerial level are responsible for daily monitoring of plantation

upkeep, production, infrastructure realiability, and other field activities.

PT IIS Tungkal Ulu has internal audit agronomy to checks the compliance of work; this internal

audit to verify the quality of harvesting, fertilizer application and spraying works.

Standard Operating Procedures of internal audit available under SOP “AA-SOP-ES-6001-R2” dated 15th August 2014. For daily implementation, mill managers has responsible for monitoring of SOP

implementation.


Monitoring consistent implementation at scheme smallholder through visit by Head Plasma. Latest visit recorded on 7-9th April 2016 as documented in “Notulen Kunjungan Lapangan (Head Plasma,

Manager Plasma & Assisstant),

Yes

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4.1.3

Records of monitoring and any actions taken

shall be maintained and available, as

appropriate.


Estate:

Estate and mill carry out daily monitoring through field inspection records and mill inspection

records. It is a routine that the estate and mill management prepare monthly reports and send to the company’s head office for monitoring purpose as well. All field inspection results are recorded in

Monthly Report.

Estate shows VA report No.KTU/R&D-AGRO/01-15 date of visit 22 – 24 April 2015. Management

shows Action Plan Kunjungan VA, a summary of action plan as response to VA visit.

Records of “Internal audit Sustainability Integrasi” is available, date of visit 30th April 2016. Correction and corrective action result has been provided.

Monthly report of estate is documented in “Laporan Uni Kebun” is covering: labour, infrastructure,

rainfall data, palm tree, cost, stock, production of FFB, and hectare statement.

Mill:

Monthly report in Mill is documented in “Laporan Unit Pabrik”, LUP and Mill Operation Summary is covering: Mill legal permit, faculities, manpower, operator permit, Working daily, Accident report,

payment salary, overtime, FFB received, CPO and PK Production, OER, KER, laboratory, water

treatment, FFB quality, environmental, UKL – UPL, monitoring of POME, cost production, maintenance, storage, etc, e.g. LUP and Mill Operation Summary in April 2016 is verified.

Upon integrated internal audit and VE result, records of corrective action is available. Correction and

corrective actions have been implemented. - Latest Internal audit on integrated sustainability was held on April 28, 2016. From the audit, 8

NCRs were raised and all have been followed up (closed out).

- Latest VE (Visit Engineering) for year 2016 was conducted on 16 – 20th March 2016 by Mr. TCJ Thomas as expert engineer. Report available which shows that Mill competency score was 74%.

- All CARs raised from the VE have been followed up (100%) by mill management, mostly were related with suffiency of maintenance and monitoring.

Scheme smallholders: Monitoring consistent implementation at scheme smallholder through visit by Head Plasma. Latest

visit recorded on 7-9th April 2016. A number of issues identified such as FFB quality, harvesting cycle, TBS restan, Prasarana jalan dan jembatan (road and bridge facilities), and hutang piutang

KUD.

Visiting Agronomy report included corrective action plan, timeline, PIC and supporting.

Yes

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4.1.4 The mill shall record the origins of all third-

party sourced Fresh Fruit Bunches (FFB).


Mill:

Tungkal Ulu Mill uses mass balance scheme as can still FFB from both certified and uncertified

sources. In latest one year, there are 31 aprroved FFB suppliers listed as supplier of FFB. Written contract available for each supplier.

To verifiy certification status of incoming FFB, an SOP regarding Supply Chain and Traceability has

been applied. The SOP contains procedure on verification the origin of FFB and its certification

status.

Mill maintains daily records of all incoming FFB which covers: the origin, weight, transporter details and other details of the FFB received. Mill incorporates the daily data into the Monthly Report and

produce mass balance report.

Record from past one year shows that 38% of incoming FFFB to Tungkal Ulu Mill came from

uncertified third parties. 62% came from its own estate or scheme smallholder.

Field check to weighbridge station showed that List of Approved FFB Supplier has been maintained and updated periodically through a computerized weighbridge system (WBSmills). Any change in

supplier list can only made by authorized person in head office with refers to FFB supply contract.

By system, non listed (official) suppliers will not be able to supply FFB to mill, because they do not have specific ID.

List of outgrowers/third parties source FFB:

1. TB; 1,065.52 tonnes 2. NZ; 26,755.95 tonnes

3. SJI; 2,111.25 tonnes

4. GPTU; 3,462.79 tonnes 5. KSP; 257.42 tonnes

6. GRB; 57.85 tonnes 7. GPP; 2,928.91 tonnes

8. MT; 2,297.17 tonnes

9. PLL; 28,633.71 tonnes 10. BU SP1; 3,976.54 tonnes

11. GMJ; 6,472.33 tonnes 12. PT; 1,345.66 tonnes

13. VCT; 221.47 tonnes

14. GUB; 2,761.43 tonnes 15. GNZ; 290.23 tonnes

16. ATB; 1,573.13 tonnes

Estate and Schemesmallholders: N/A

Yes

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Criterion 4.2

Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield.

4.2.1 There shall be evidence that good agriculture practices, as contained in Standard Operating

Procedures (SOPs), are followed to manage soil

fertility to a level that ensures optimal and sustained yield, where possible.


Estate: Estate field standard are documented for all estates and management is by Agricultural policy and

SOP’s. A number of specific operating procedures is in place to manage fertility through application

of fertilizer and other organic matter as nutrition. - Chapter 14 – Fertilizer Policy No.OP/C14/06/01 dated 1st June 2006 explains fertilizer

recommendation, empty bunches mulching, Mature and immature fertilizer regime; - Chapter 15 – Fertilizer sampling Policy for Quality Control No.OP/C15/06/01 dated 1st June

2006; - Chapter 16 – Sample taking Policy No.OP/C16/06/01 tanggal 1 Juni 2006 explains sample

taking, sampling on the ground, vegetative measurement, sampling frequency, etc.;

SOP Fertilizer Application MAT 4 ver.1 dated 1st September 2010 related to oil palm fertilizer;

SOP POME Application MAT 20b related to Palm Oil Mill Effluent utilization as liquid nutrient;

Scheme smallholders: The cooperatives are following PT Inti Indosawit Subur’s procedures to maintain soil fertility. The

procedures comprise of fertilizer application and cover crop planting. Cooperatives follow these procedures; leaf samplings are taken annually to accurately capture palm nutrient requirement

(both macro and micro nutrient) and to provide information of nutrient requirement and fertilizer recommendation. Anorganic fertilizer application follows fertilizer recommendation. Another effort is

to plant legume cover crop.

Yes

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4.2.2 Records of fertiliser inputs shall be maintained.


Estate:

Fertilizer recommendation and actual implementation is recorded under “Rekomendasi Pemupukan

2016 PT Inti Indosawit Subur – Tungkal Ulu tahun 2015”.

The fertilizer recommendation defines the fertilizer recommendation per afdeling, type of fertilizer, dosage per palm, total tonnage, month of application, e.g. Fertilizing in 2016

Rotasi/Block Type of

Fertilizer

Recom.

(kg/ha/palm)

Applied

(kg/ha/palm)

Rotasi 1 (block

B91c)

ZA 1.50 1.50

RP 1.00 1.00

MOP 1.00 1.00

Dolomite - -

Borak - -

EFB 370 370

Rotasi 1 (block

B91f)

ZA 2.00 2.00

RP 1.50 1.50

MOP 2.00 2.00

Dolomite - -

Borak - -

EFB 250 250


Fertilizer recommendation and actual implementation is recorded.

KUD Karya Kita: Record of fertilizer recommendation and actual applied is maintained in “Rekomendasi Pemupukan

Tahun 2016, e.g. KT 1, Planting year 1991, total 44 ha. Recommendation for fertilizer MOP 1.75 kg/palm/cycle; total applied in cycle 1 is 9,625 for area 44 ha (5,500 palm tree) = 1.75 kg/palm

tree/cycle.

KUD Harapan Jaya:

Record of fertilizer recommendation and actual applied is maintained in “Rekomendasi Pemupukan Tahun 2016, e.g. KT 2, Planting year 1993, total 40 ha. Recommendation for fertilizer ZA 2.25

kg/palm/cycle 1; total applied in cycle 1 is 11,250 for area 40 ha (5,500 palm tree) = 1.75 kg/palm

tree/cycle.

Yes

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4.2.3 There shall be evidence of periodic tissue and

soil sampling to monitor changes in nutrient

status.


Estate:

Company is able to demonstrate Foliar Analysis Report from PT Nusa Pusaka Kencana Analytical &

QC Laboratory. The latest foliar analysis carried out June 2014, as base for fertilizer recommendation 2015.

Document seen:

Foliar Analysis Report No.074/INT/R&D/JUN/L/15 dated 3rd 26/05/2015 for recommendation

fertilizer in 2016.

Soil Analysis carried out every 6 years, the last soil analysis in September 2010 and planned soil survey in this year. Soil Analysis is documented in “Laporan Survey Tanah Semidetil Area

Perkebunan Kelapa Sawit PT Inti Indosawit Subur Kebun Tungkal Ulu”. Based on the report, the physiographic location in plain with hilly tuffaceous sedimentary rocks. Lithology parent material is

clay and sand. Topographic of the area is rolling to hilly. Natural fertility is low to medium.


KUD Karya Kita: Periodic tissue sampling carried out annually, the last leaf sampling in 2015 for each KUD areas,

e.g. KUD Karya Kita (Hamparan 6) in 2015, testing result N (2.23 % on DM), P (0.144 % on DM), K

(0.84 % on DM), Mg (0.21 % on DM), Ca (0.61 % on DM) and Minor elelemt 9 ppm on DM.

KUD Karya Kita: Periodic tissue sampling carried out annually, the last leaf sampling in 2015 for each KUD areas,

e.g. Hamparan 12 in 2015, testing result N (2.51 % on DM), P (0.166 % on DM), K (0.80 % on DM), Mg (0.19 % on DM), Ca (0.92 % on DM) and Minor elelemt 10 ppm on DM.

Yes

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4.2.4 A nutrient recycling strategy shall be in place,

and may include use of Empty Fruit Bunches

(EFB), Palm Oil Mill Effluent (POME), and palm residues after replanting.


Estate:

The company applied EFB to increase the soil fertility, e.g. applied EFB from January 2016 – May

2016 (total 24,451,005 Kg)

The company also applied POME in Land Application (LA), e.g. applied POME in January 2016 (12,220 MT in area 65.17 ha), February 2016 (10,589 MT in area 56.47 ha), March 2016 (7,905 MT

in area 42.16 ha), April 2016 (8.154 MT in area 43.49 ha), June 2016 (7,979 MT in area 42.55 ha)

Apllied Decanter Solid 1,752,327 Kg up to up to May 2016..


No smallholders applied EFB and effluent

Yes

Criterion 4.3 Practices minimise and control erosion and degradation of soils.

4.3.1 Maps of any fragile soils shall be available.


Estate:

Soil Analysis carried out in September 2010. Reported under “Laporan Survey Tanah Semidetil Area Perkebunan Kelapa Sawit PT Inti Indosawit Subur Kebun Tungkal Ulu”. Based on the report, the

physiographic location in plain with hilly tuffaceous sedimentary rocks. Lithology parent material is clay and sand. Topographic of the area is rolling to hilly. Natural fertility is low to medium.

Soil suitability: S2 2,357.5Ha (47.3%) with limiting factor of low natural fertility with low pH; S3

2,200.1 Ha (44.7%) with limiting factor of topographic condition (slope 15-30%); N1 (not suitable)

391.4 Ha (8%) with limiting factor of slope more than 30%.

Scheme smallholder: PT Inti Indosawit Subur – Tungkal Ulu prepared soil map based on soil type map, as per amdAL

document. The soil type for smallholder area explains under “Peta Group Tanah dan Geologi”.

Yes

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4.3.2 A management strategy shall be in place for

plantings on slopes above a certain limit (this

needs to be soil and climate specific).


Estate:

Continuous Improvement Plan Kebun Tungkal Ulu is to have continous terrace, road drainage, drain

maintenance. Implementation of terrace under “Rekapitulasi Program Teresan Manual 2015”. Program is to have 2,331 meters in Afdeling I; 10,346 meters in Afdeling II; 1,338 meters in

Afdeling III; 14,765 meters in Afdeling IV; 3,977 meters in Afdeling V; 2,231 meters in Afdeling VI. Actual manual terrace construction is 100 meters in Afdeling I for January, 300 meters in Afdeling

III for February and 600 meters in Afdeling III for May 2015.

Planning for road drainage 2015 is 295 units. Record of implementation in January 2015 Afdeling

constructed I 15 units, Afdeling II constructed 18 units, Afdeling III constructed 21 units, Afdeling IV constructed 13 units, Afdeling V constructed 15 units, and Afdeling VI constructed 10 units. In

February 2015 Afdeling constructed I 19 units, Afdeling II constructed 8 units, Afdeling III constructed 10 units, Afdeling IV constructed 14 units, Afdeling V constructed 19 units, Afdeling VI

constructed 15 units. In March 2015 Afdeling I constructed 22 units, Afdeling II constructed 18

units, Afdeling III constructed 23 units, Afdeling IV constructed 25 units, Afdeling V constructed 22 units, Afdeling VI constructed 28 units.

Drain maintenance programmed for 400 units in 2015. Record shows in January 2015 company

has 100 unit drains maintained in Afdeling I. In February 2015 company has 300 unit drains

maintained in Afdeling III.

Scheme smallholder: Cooperative follows PT Inti Indosawit Subur’s procedure for land clearing stated that no land

clearing should performed on area with slope >40%. The strategy implemented by cooperatives is frond stacking and maintain natural vegetation as cover crop. Specific for low-laying area, the

strategy is to maintain cover crop, drainage ditch and frond stacking.

Based on semi-detail soil survey map and field visit – there is 2,854 Ha area with limiting factors of topography and poor drainage.

Yes

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4.3.3 A road maintenance programme shall be in

place.


Estate:

Road maintenance programme is available in Tungkal Ulu estate.

Based on filed visit in Afdeling V shown that the company has conducted a maintenance of road

proprerly, the evidances are main road and collection road in good condition. Based on document review in “Realisasi Pengerasan Jalan dan grading Afdeling V tahun 2016”,

shown that the company has conducted

Scheme smallholders: KUD Karya Kita:

Road maintenance program is documented in “Program Perbaikan Jalan – KUD” e.g. Road maintenance in KUD Karya Kita; Road maintenance for each Kelompok Tani (Farmer Group is

detailed monthly, for 2015 (89,020 metres) achieve 100% in 2015. Road maintenance in 2016,

planned 89,030 metres; actual 23,100 metres up to April 2016. Based on field visit, it was found that road maintenance programme is implemented.

Road maintenance programme is available in form of planning for levy deducted from each kg FFB

sold from KUD. The deduction for road maintenance carried out by KUD (Rp. 3/kg for main road

and Rp. 5/kg for collection road), total deduction is Rp. 8/kg FFB produced.

KUD Harapan Jaya: Road maintenance program is documented in “Monitoring Realisasi Perbaikan Jalan Tahun 2016 –

KUD Harapan Jaya”; Road maintenance for each Kelompok Tani (Farmer Group is detailed monthly), actual road maintfor 2015 (89,020 metres) achieve 100% in 2015. Road maintenance in

2016, planned 89,030 metres; actual 23,100 metrnance in 2014 (63,010 metres), 2015 (63,536

metres) and up to May 2016 (21,350 metres)

Based on field visit, it was found that road maintenance programme is implemented.

Road maintenance programme is available in form of planning for levy deducted from each kg FFB

sold from KUD. The deduction for road maintenance carried out by KUD (Rp. 5/kg)

Yes

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4.3.4 Subsidence of peat soils shall be minimised and

monitored. A documented water and ground

cover management programme shall be in place.


Estate:

Based on the semi-detailed soil analysis, the soil type falls into loam and clay. There is no peat soil

identified within PT Inti Indosawit Subur – Tungkal Ulu plantation.

Scheme smallholders: Based on soil map, there is no peat soil in the area of KUD/Scheme smallholders. Furthermore, base

on field visit there is no peat soil on farmer plots.

Yes

4.3.5 Drainability assessments shall be required prior to replanting on peat to determine the longterm

viability of the necessary drainage for oil palm growing.


Estate: Based on the semi-detailed soil analysis, the soil type falls into loam and clay. There is no peat soil

identified within PT Inti Indosawit Subur – Tungkal Ulu plantation.


Based on soil map, there is no peat soil in the area of KUD Sawit Kita. Furthermore, base on field visit there is no peat soil on farmer plots.

Yes

4.3.6 A management strategy shall be in place for

other fragile and problem soils (e.g. sandy, low organic matter, acid sulphate soils).


Estate:

Based on semi-detailed soil survey, there is no peat soil in Tungkal Ulu Estate.

Recommendation for area with steep slope (>30%) is not to open. Recommendation for area with low natural fertility is to apply EFB. Block B91d, planting year

1991, 101 Ha, mineral soil, rolling/hilly area. Recommendation for EFB 370kg/palm; total application 3,758,830 kg from January – May 2015.

Block B91f, planting year 1991, 73 Ha, mineral soil, rolling/hilly area. No recommendation for EFB; total application 87,780 kg for January – February 2015.

Block D91c, planting year 1991, 85 Ha, mineral soil, rolling/hilly area. Recommendation for Solid

70kg/palm; total application 782,670kg from February-May 2015.


Farmer implemented minimum spraying (using spraying team service), frond stacking against contour line and maintain natural vegetation and beneficial plants. This best management practices

implemented at a number of farmer plot of KUD Sawit Kita, where slope identified >25%.

Yes

Criterion 4.4 Practices maintain the quality and availability of surface and ground water.

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4.4.1 An implemented water management plan shall

be in place.


Mill, Estate, and Schemesmallholders:

The company has established water management plan as documented in “Water Management Plan

– Kebun Tungkal Ulu”, consist of management water supply for domestic, water consumption and measurement of water quality.

The company has conducted measurement of water quality regularly and consistent, the result

shown that water quality is complies with national regulation, e.g. Ground water usage testing

result in November 2015 iver water in upstream and downstream Benanak River in November 2015,

Hasil uji air limbah POME; certificate no. 1338 in December 2015 by independent laboratory (UPTB

Laboratorium Lingkungan Hidup –BLHD Prov. Jambi), BOD 483 mg/L.

Yes

4.4.2 Protection of water courses and wetlands, including maintaining and restoring appropriate

riparian and other buffer zones (refer to national best practice and national guidelines)

shall be demonstrated.


Mill, Estate, and Schemesmallholders: The water used for domestic purposes comes from the surface water then pumped into the tank

and supplied to the employee residences. To maintain the water source, the company have been planted the native trees around along rivers.

The company has demarcated 50 metres (left and rights side) along the small river) and 100 metres for large river as riparian zones and no any spraying in those areas to prevent chemical

contamination into the river.

SOP for maintaining riparian zone is under SOP AA-APM-OP-1100.05. R1 “Konservasi Tanah dan Air”, it is stated that at during land clearing area along the river shall be conserved.

Scheme Smallholders: Based on field visit, it was no found chemical applied along the water course; signboards are

available in water course/river which prohibited applied checmical along the river.

Yes

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4.4.3 Appropriate treatment of mill effluent to

required levels and regular monitoring of

discharge quality, especially Biochemical Oxygen Demand (BOD), shall be in compliance

with national regulations (Criteria 2.1 and 5.6).


Mill:

Observed during field check a proper Waste Water Treatment Facility to reduce BOD value before it

is discharged to land application. There are 10 units of pond with total capacity of 89,074 m3. It uses unaerobic method to reduce BOD into permissible level.

In addition, a biogass power plant is under construction in 2016 and projected to be finished in

2017.

Mill conducts routine (monthly) check on mill effluent quality before it is discharged to land

application. The independent and accredited Laboratory (UPTB Laboratorium Lingkungan Daerah Provinsi Jambi) collects samples and tests the effluent discharge monthly for compliance.

Observed that the results for the BOD Monitoring complied with all effluent discharge licence

parameters (KepmenLH No. 28 with regards to BOD limits of effluent discharge for land

application). The BOD of the treated Mill effluent discharge was maintained consistently less than 5,000 mg/L throughout 2015 and 2016. In addition, the effluent volume applied in estate consistent

to the permit (<600 m3 per day).

Example of effluent quality monitoring result for last three months :

- April 2016: BOD was 1.810 mg/L, average debit 372.76 m3/day - March 2016: BOD was 605 mg/L, average debit 457.18 m3/day

- Februari 2016: BOD was 97 mg/L, average debit 526.88 m3/day

Land applicaiton permit available (see indicator 2.1.1), valid until 17 September 2016.


Yes

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4.4.4 Mill water use per tonne of Fresh Fruit Bunches

(FFB) (see Criterion 5.6) shall be monitored.


Mill:

Observed monitoring result of water usage in mills includes monitoring of water usage for mill

processing and domestic usage. Result of water usage monitoring is recorded under “Mill Operation Summary 2016”. Review on record confirmed met with the approved budget for processing and

domestic.

Record of water usage for FFB processed is recorded in “Data Monitoring Pemakaian Air PMB”, e.g.

average water usage for process in 2016 up to May 2016 is 1.21 m3/tonnes FFB, with average annual budget 1.10:

- January : 1.26 m3/tonnes FFB - February : 1.2 m3/tonnes FFB

- March : 1.19 m3/tonnes FFB - April : 1.22 m3/tonnes FFB

- May : 1.18 m3/tonnes FFB

The figure shows actual water consumption exceeding budget. According to management review,

this occurs due to low FFB input (30%) in recent months.

Reference of water usage and water eficiency monitoring: SOP AA-MPM-OP-1400.11-R1


Yes

Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management techniques.

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4.5.1 Implementation of Integrated Pest

Management (IPM) plans shall be monitored.


Estate:

IPM Plan includes early warning system and the planting of beneficial plants. Records of bagworm

census and black bunch census from each estate are available. From these records no infestation above economic threshold.

Integrated Pest Management:

1. Census of Pests and Diseases held in 3 monthly bases, the latest census was conducted in May

2016, there were attacks Sethosea assigna (Nettle Caterpillar) that exceed the threshold that covers an area of 27 ha that have been implemented chemicals control, for which is still under

threshold with biological control (beneficial plant), for which the company has added the planting of beneficial plant.

2. Barn owl for control of rat pest, there were 188 barn owl (with ratio 1:25 Ha). The company has been carrying out a census of barn owl every 3 months, the lat monitoring was conducted in

May 2016 was found that occupancy rate is 52% (occupied) and based on existing owl’s feces,

it was found occupancy rate is 100%. 3. Planting of beneficial plant in 2015 is 6,800 points (@ 6 piecies) dan in 2016 up to May 2016 is

4,906 points. 4. Record of rat and tirathaba attack is mointered monthly, e.g April 2016 there were attacks in

Afdeling I to IV exceeding the threshold attacks 5% of plants that attacked. The company has

added and update with permanent barn owl (KBH) to anticipation of rat pest attack with ratio 1:25 Ha. Rat attacks on Afdeling V-VII showed small attack, i.e: 0.12%, 0.21% and 3.69%, due

to cages of owl (ratio 1:25) has been fulfilled. Scheme smallholders: KUD Karya Kita:

Records of pest monitoring/census are available to monitor the pest attack of eating leaf caterpillar

from January – April 2016. The result shows no pest infestation above economic threshold.

Farmer groups installed barn owl boxes, to control the rat infestation. These barn owl boxes found on KT 1, KT 10, KT 18 and KT 26 KUD Karya Kita. Total barn owl 20 units.

Beneficial plant such as Cassiatora planted 765 point in Jnauary – June 2016.

KUD Harapan Jaya: Records of pest monitoring/census are available to monitor the pest attack of eating leaf caterpillar

from January – April 2016 as documented in “Formulir Sensus Hama Daun”. The result shows no

pest infestation above economic threshold.

Farmer groups installed barn owl boxes, to control the rat infestation. These barn owl boxes found on KT 1, KT 10, KT 18 and KT 26 KUD Karya Kita. Total barn owl 24 units (7 units in good condition

and 17 units were broken), there is planning in 2016 to activate barn owl this year.

Yes

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4.5.2 Training of those involved in IPM

implementation shall be demonstrated.


Estate:

Training records for staff on IPM implementation were availableand verified to be satisfactory

during on-site assessment. Training records seen from Tungkal Ulu estate comprise of pest and disease management and weed management.

Pest and Disease Clinic dated 26th November 2014, attended by 30 personnels from managers to

field supervisor level.


KUD Manunggal Jaya: KUD Karya Kita (Lihat 4.8.1)

KUD Harapan Jaya (lihat 4.8.1) Training Hama dan Penyakit (Pengendalian Ulat Api) was conducted on 23/10/2015, attended 20

members (attendance list and training material are available).

Yes

Criterion 4.6 Pesticides are used in ways that do not endanger health or the environment.

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4.6.1 Justification of all pesticides used shall be

demonstrated. The use of selective products

that are specific to the target pest, weed or disease and which have minimal effect on non-

target species shall be used where available. - Major compliance -

Estate:

The justification of pesticide used is explained under company procedure.

PT Inti Indosawit Subur shows “SOP Pengendalian Gulma No.AA-APM-OP-11100.08-R1” dated 1st November 2008. Chapter IV explains the weed control program for woody, grass, fern, caladium,

wild banana (Musa spp), Aystasia. It does explain active ingredients use to control such weed, dosage per application, type of nozzle used and volume of spraying per application.

Chapter V explains selection of pesticide and its active ingredients content, nature of the pesticide and target species. Chapter VII describes calculation of actual area implemented per hectare

plantation (spray factor), spraying rotation and spraying output. Interview with herbicide sprayer, they understand the target species and active ingredients to

control them. Sprayer shows knowledge on minimizing chemical impact on beneficial weed.


The members of the Scheme Smallholders have agreed with the PT Inti Indosawit Subur to eliminate paraquat use. Herbicide applied by trained sprayers of PT Inti Indosawit Subur.

Record of herbicide application shows there is no use of agrochemicals categorized as WHO Type

1A or 1B within smallholder blocks.

List of pesticides was usage is available in “Daftar Pestsida yang digunakan oleh PT. IIS – Tungkal

Ulu”

Yes

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4.6.2 Records of pesticides use (including active

ingredients used and their LD50, area treated,

amount of active ingredients applied per ha and number of applications) shall be provided.


Estate:

Records of pesticide use (including active ingredients used and their LD50, area treated amount of

active ingredient applied per Ha and number of applications) had been maintained and kept by Agronomy, starting from 2013. Verified that records of monitoring were satisfactory.

Sample taken:

Estate:

- Applied pesticide on 25/04/2016 in Block A90F (105 ha); type: Kenlon (Trychlopir butoxy ethyl ester); for “Gawangan” is 375 cc/ha.

- Applied Polydor (ingredient: Lamda silahotrin) for controlling Nettle Caterpillar in Division VII (27 ha) with dosage 0.3 liter/ha.


KUD Karya Kita: Pesticide application is recorded in “Rekapitulasi rencana dan Realisasi TUS Tahun 2015.

Sample taken:

Applied pesticide in cycle 1 (Rotasi 1) in 2015 in SP 1; Glyphosate 113.8 liters. (Dosis 1.21

liters/ha).

KUD Harapan Jaya: Pesticide application is recorded in “Rekapitulasi rencana dan Realisasi TUS Tahun 2015.

Sample taken:

Applied pesticide in cycle 1 (Rotasi 1) in 2015 in SP 2; Paraquat 293.0 liters. (Dosis 0.79 liters/ha).

Yes

4.6.3 Any use of pesticides shall be minimised as part of a plan, and in accordance with Integrated

Pest Management (IPM) plans. There shall be

no prophylactic use of pesticides, except in specific situations identified in national Best

Practice guidelines.


Estate and Schemesmallholders: It is the policy to minimize the use of pesticide in accordance to IPM plan. No prophylactic use of

pesticide had been carried out at the estates for the period concerned. The pesticide reduction

program is monitored on usage per hectare basis.

Yes

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4.6.4 Pesticides that are categorised as World Health

Organisation Class 1A or 1B, or that are listed

by the Stockholm or Rotterdam Conventions, and paraquat, are not used, except in specific

situations identified in national Best Practice guidelines. The use of such pesticides shall be

minimised and eliminated as part of a plan, and

shall only be used in exceptional circumstances.


Estate:

The company has recorded Paraquat usage monthly and yearly basis, based on document review, it

was seen Paraquat usage base yearly series, such as: 2009 (664 liters), 2010 (1,307 litres), 2011 (259 liters), 2012 (298 liters), 2013 (180 liters), 2014 (172 litres), 2015 (684 litres), up to May 2016

(1.089 liters), it was seen that increasing Paraquat usage, however no any plan to eliminate. (Minor NC raised)

Scheme smallholders: Monitoring of Paraquat usage in all KUDs in 2014 (2,807 liters) and 2015 (2,604 liters)

KUD Karya Kita

Rekaman penggunaan Paraquat tahun 2014 (332 liters) and 2015 (327 liters).

KUD Harapan Jaya:

Rekaman penggunaan Paraquat tahun 2014 (319.2 liters) and 2015 (316 liters).

No

4.6.5 Pesticides shall only be handled, used or

applied by persons who have completed the

necessary training and shall always be applied in accordance with the product label.

Appropriate safety and application equipment shall be provided and used. All precautions

attached to the products shall be properly observed, applied, and understood by workers

(see Criterion 4.7).


Estate and Scheme Smallhoders:

Agrochemical is only handled, used and applied by trained personnel. Based on field visit to

chemical store, and interview with the storekeeper, they admit to have proper training. The chemical store equipped with MSDS, appropriate PPE (face shield, respirator, apron, gloves and

rubber boot) and emergency equipment – in the case of spillage or exposure. Company provides training on pesticide handling. Scheme smallhoers also traine “limited

Pesticides”, e.g. on 27th June 2015 was conducted by PT. IIS, attended 20 members.

During field visit in Scheme smallholders plots, it was found that harvester using PPE appropriately

and applied pesticides is handling by Team TUS (Tim Unit Semprot) PT. IIS – Tungkal Ulu.

Yes

4.6.6 Storage of all pesticides shall be according to

recognised best practices. All pesticide containers shall be properly disposed of and not

used for other purposes (see Criterion 5.3). - Major compliance -

Estate:

Storage of pesticides found to be in accordance with hazard identification and risk assessment and national guideline for limited pesticide use. Empty chemical containers had been used for mixing

chemicals for spraying pesticides in the field.


Pesticides is handling by PT. IIS Tungkal Ulu

Yes

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4.6.7 Application of pesticides shall be by proven

methods that minimise risk and impacts.



Pesticides had been applied using the Best Management Practices that minimize risk and impacts.

The acgrochemical storekeepers, supervisors and sprayers found to understand the use of the correct pesticide type, dosage, nozzle, spray factor, spray quality and spray techniques.

Yes

4.6.8 Pesticides shall be applied aerially only where there is documented justification. Communities

shall be informed of impending aerial pesticide applications with all relevant information within

reasonable time prior to application.


Estate and Scheme Smallhoders: No applied pesticide aerially

Yes

4.6.9 Maintenance of employee and associated smallholder knowledge and skills on pesticide

handling shall be demonstrated; including

provision of appropriate information materials (see Criterion 4.8).


Estate and Scheme Smallhoders: Periodic training on pesticide handling had been carried out for the workers. Information on the

pesticides displayed on the agrochemical storage. Agrochemical is only handled, used and applied

by trained personnel. Based on field visit to chemical store, and interview with the storekeeper, they admit to have proper training. The chemical store equipped with MSDS, appropriate PPE (face

shield, respirator, apron, gloves and rubber boot) and emergency equipment – in the case of spillage or exposure.

Yes

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4.6.10 Proper disposal of waste material, according to

procedures that are fully understood by workers

and managers shall be demonstrated (see Criterion 5.3).



The company store hazardous waste in temporary storage with permit from BLHD Kabupaten

Tanjung Jabung Barat no. 660/487/IX/BLHD/2009, valid until 28 September 2019. The company disposed the hazardous waste / chemical and their containers to the registered collector (PT. Shali

Riau Lestari (approval permit from Environmental Ministry no. 237 Tahun 2011 – valid until 7th November 2016) and agreement PT. Shali Riau Lestari and PT. IIS no. 030/SRL-PKU/MOU/III/2015.

Sample taken: Hazardous waste is disposed to register collector (PT. Shali Riau Lestari):

Date Manifest no. Type of Hazardous waste

Quantity

08/09/2016 0004817 Empty container

pesticides

4 drums

31/03/2016 0006465 Empty container pesticide

6 drums

Each type of hazardous waste also is recorded in storage and balancing stock is monitored

regularly, balancing stock is available in “Gudang Limbah B3. Chemical applied by scheme smallholders is handled by the company, inluded disposed of waste material.

However, based on interview and field visit at KUD Karya Kita (KT. 10), it was found that the parcel

owner cannot demonstrate knowledge on pesticide handling and proper disposed empty container

pesticides (This Minor NC in previous audit is upgraded become Major NC)

Corrective action: - Training Use of Pesticides Limited, dated July 19, 2016, attended by 47 employees Inti and KUD,

for example: in the name of H. Ahmad Aman, Sakam, Pujadion, Supriyatna. - Herbicide Training Limited dated July 19, 2016 performed by a team KP3 Jambi Province in

cooperation with PT Syngenta also attended from the DNAs of Agriculture, Disbun and Jambi

Provincial Health Office. - The letter stating of employees KUD Karya Kita, Farmers Group Tandan Mas, KTH 10, letter no.

01/KUD.KK/V/06/16, dated 16 July 2016 on behalf of H. Ahmad Aman, that: spraying will be conducted by Team TUS.

This Major NC was closed out in 15/08/2016

Yes

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4.6.11 Specific annual medical surveillance for

pesticide operators, and documented action to

treat related health conditions, shall be demonstrated.



The company has conducted medical check up for all employee who are exposed to chemical and

working in risk area, such as: sprayer, fertilizer applicator, clerck, chemical warehouse personnel, fertilizer warehouse personnel and welder.

MCU conducted by an independent labolatory “Prodia” twice a year, the last MCU was conducted n

11/04/2016 (result of MCU has not issued yet by Prodia, the previous MCU was conducted in

October 2016 e.g. MCU for Rina Asmara (sprayer), Sumiarmi (Sprayer).

Based on document review, there were no symptom of chemical poisoning, especially sprayer personnel.

Yes

4.6.12 No work with pesticides shall be undertaken by

pregnant or breast-feeding women.



Estate performed monthly pregnancy check for the female sprayers. It was verified from records, field inspections and interviews that no pregnant or breastfeeding woman can work as pesticide

operator.

Record of pregnancy test is sited for period January – May 2015. Record seen”Berita Acara Tes

Kehamilan” available.

Scheme smallholders / Cooperative is coordinating their member, using service from PT IIS’s spraying team. Same standard applied for sprayers for scheme smallholder’s plot. Record seen

”Berita Acara Tes Kehamilan”.

Yes

Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

Specific Guidance for 4.7.7: The National Interpretation will define the metrics for LTA. For countries where there are no national interpretations, the growers will determine their own metrics.

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4.7.1 A health and safety policy shall be in place. A

health and safety plan covering all activities

shall be documented and implemented, and its effectiveness monitored.


Mill:

The health and safety policy is available in “Kebijakan Perusahaan” signed by top management 1st

December 2014. Chapter of the policy 4 mentioned “…to determine measurable objective and target to prevent accident and occupational disease for all worker and other interested parties,

through continuous improvement.” The policy available in Indonesian language and has been communicated to mill management and all staf through health and safety committee.

A set of objectives and programmes has been derived from the policy and updated annualy. Example of objective and programmes for 2016 available, which consist of two main objectives:

minimize accident in mills and create safety culture in work place. Safety and health objectives and targets of 2015 can be achieved as seen in the Annual Mill Performance report, accident and near

miss log table.

Monitoring of safety and health efectivity hs been done periodically. Record of occupational safety

and healthy implementation availabe and has been reported to manpower office on monthly basis. Safety reports for period January – March 2016 has been sent on 10th May 2016.

Estate:

- HIRADC updated if any accidents and/ or new activity. The las update on 14th March 2016

- OHS Program 2016 as documentd in “Objective and program – 2016 PT Inti Indosawit Tungkal Ulu”, including: regular meeting of P2K3, OHS training, emergency response, evaluation of P2K3

perfomances, Socialization of OHS regulation to all employees, rugulary OHS inspection to workplace conditions, and P3K completeness.P2K3 organizational structure has been approved by

Departemen of Labor and Transmigration West Tanjung Jabung regency Barat no. 560/4784.3/DSTKT/2016, dated 10 May 2016.

- Appointment of OHS expert on behalf Mr Rudi Wijaya accordance with “Keputusan Menteri

Ketenagakerjaan” RI No. KEP. 17332/M/DJPPK & K3/XII/2015, dated 09 December 2015 (valid until 08 December 2018)

- P2K3 Meeting conducted monthly, e.g e.g. P2K3 meeting on 19/01/2016, attended 9 members, minutes meeting: review meeting December 2015, accident, review risk assessment, the high

rate of illness in clinic and emergency response tool checking.

- Report of accidents documented in “ Rekaman Kecelakaan Kerja”, where each work accidents investagasted to find the root cause, corrective and preventive actions have also been made to

prevent accidents repeated. There were 66 minor accidents that occurred in 2015.

Yes

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KUD Karya Kita:

- HIRAC updated if any accidents and / or new activity, the last update for 2015/2016. - OHS program, updated in April 2016 as documented in "Health and safety at work, KUD Karya

Kita - 2016" PT. IIS - Tungkal Ulu, which include: the map (fire extinguisher, hydrant, exit route, assembly point, flag evacuation), setting up a team of emergency response, drilling,

socialization of road safety for the driver of truck FFB, First aiders, training of basic fire, and

training of accident investigation, - OHS Procedure updated in April 2016, for the harvest / pieces of fruit, fertilization and plot

maintenance. - The report of accidents documented in "Records of Accidents", there were 6 minor accidents in

2016 until May 2016.

KUD Harapan Jaya:

- HIRAC updated if any accidents and / or new activity, last update for 2015/2016. - OHS program, updated in April 2016 as documented in "Health and safety at work, KUD Karya

Kita - 2016" PT. IIS - Tungkal Ulu, which include: The map (fire extinguisher, hydrant, exit route, assembly point, flag evacuation), setting up a team of emergency response, drilling, socialization

of road safety for the driver of truck FFB, First aiders, training of basic fire training accident

investigation, - OHS Procedure, updated in April 2016, for the harvesting and loose fuit collector, fertilization and

upkeep. - The report workplace accidents documented in "Records of Accidents", there are 4 recording

occupational accidents occupational accidents were made in cooperation with the health center. - OHS Training was conducted on 20/02/2016, Attended 28 members and villages officer.

- In 2016 and in May 2016, generally at in harvesting division.

- Records of occupational accidents created in cooperation with the health centre

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4.7.2 All operations where health and safety is an

issue shall be risk assessed, and procedures

and actions shall be documented and implemented to address the identified issues.

All precautions attached to products shall be properly observed and applied to the workers.


Mill, Estate and Scheme Smallhoders:

HIRAC document available for all milll activities and stations in document “Hazard identification &

Risk Assessment and Control / Analisa Resiko”. Latest update available for April 30th, 2015 and The document includes plan to control the risk, PIC, and target.

All plans have been implemented such as:

- PPE provision for workers: safety shoes, helmet, eyeglass, gloves, ear plug, ear muff, safety belt,

masker, rubber gloves for chemical work. Example of PPE provision: On April 2016 company provided safety shoes for all worker, On 29th April 2015, company provides helmets.

- Safety signboard - Safety briefing

- First aid box (8 locations)

Approval of P2K3 structure available no. 560/681/4.3/DSTKT 2015, dated June 2015.

No

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4.7.3 All workers involved in the operation shall be

adequately trained in safe working practices

(see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all

workers at the place of work to cover all potentially hazardous operations, such as

pesticide application, machine operations, and

land preparation, harvesting and, if it is used, burning.


Mill, Estate and Scheme Smallholder:

Based on field visit in Kelompok Tani (Farmer group) 26 - Timbul Jaya; plot no. 1601, it was found

workers who conduct prunning without appropriate PPE (Major NC raised)

All workers have been trained adequately in safe working practices, as shown by: 1. Refreshment of safe working practices for staffs. e.g. Emergency response simulation on

Desember 19, 2015, basic fire training on Mei 28, 2015 attended by 38 workers.

2. Routine safety briefing. Confirmation gained from interview with workers in mills. 3. Training for operators. All operators have trained and had “SIO”:

- Boiler operators, 8 operators, all have had SIO. e.g. Mr. AS certificate number: 10.640/PNK3-PUBT/OB-I/V/10

- Welder, 2 operators, all have trained. e.g. Mr. PSS certificate number: S.171/JL/PNK3/IV/2015.

- Heavy loaded vehicles, 2 operators, all have had SIO. e.g. Mr. BR (loader operator) holds

license No.11.10035-OPK3-PAA-VII/2011 valid until 29th July 2016 - Sterilizer operators, 2 operators, all have had SIO. e.g. Mr. EBU (Sterilizer operator) holds

license No.09.380/PNK3-PUBT/OB-I/VI/09 valid until July 29, 2016. - Electrician, 1 trainend operators Mr. HJP (Electrician) No.00291/TK3-LIST/II/2014, , valid

until 27th February 2017

Company has provided relevant PPE for workers (see indicator 4.7.2). Nevertheless, observed

during field visit at Tungkal Ulu Mill that a number of workers at Tungkal Ulu Mill do not use appropriate and adequate PPE such as:

1. workers who was working at high place in WTP station did not use safety harness. 2. Operator in Engine Room (Mr. PM) did not use earplug / ear muff when work in high nois

3. Boiler operator (Mr. AS) did not use earplug / ear muff when work in high noise level.

Based on field visit in Kelompok Tani (Farmer group) 26 - Timbul Jaya; plot no. 1601, it was found

workers who conduct prunning without appropriate PPE (Major NC raised).

Yes

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Corrective Action:

Tungkal Ulu Mill has been able to show the eviden to proof:

- Corrective action has been created in the form of: Corrective Action Plan RSPO ASA4 PT IIS - Tungkal Ulu No.8160894.

- Log book breefing pagi dated 7, 15, 21, 22, 25 and 27 July 2016: the mandatory use of PPE - Monitoring the use of personal protective equipment (PPE); the checks carried out in person,

for example, in July 2016 on behalf of Mr. PM as engine operator (PPE used engine room: Ear

muff, helmets, safety shoes), Mr.HS as opr. boiler (PPE used: Helmet, Ear plug, gloves and safety shoes)

- Procurement and handover APD: Inventory: ear muff, while other PPE is given to each employee, the last PPE was given to the boiler operator dated 15 June 2016, such as: ear

plugs, engine room, dated 20 June 2016: ear muff. Body Harnnes on 23 May 2016 as much 4 units.

- At the time of the verification audit visit dated 12 August 2016 to the engine room and the

location of WWTP, it can be seen that the employee / operator has to use appropriate PPE (enggine operator: ear muff and ear plugs).

- The Company also issued Memorandum no. 115/MI-PTU/MEMO/07/2016, dated 1 July 2016; regarding the use of PPE shall be signed by the Mill Manager (Mr. Pirma Hutagaol) and instantly

disseminated on 1 July 2016, attended by all employees in accordance with the work shifts and

can be shown to absenteeism (list of attendence) dated 25 July 2016 which was attended by 26 employees. With the memorandum issued it if in the future there are employees who do not

use of PPE will be sanctioned.

Scheme smallholders: - Handover of personal protective equipment KUD Karya Kita, Farmers Group Timbul Jaya, on 29

June 2016, such as: helmet, gloves, glasses and sarung Egrek.

- Training on the use of personal protective equipment KUD Karya Kita, on 29 June 2016 in the office of KUD SP-3, was attended by 16 employees of harvesting and pruning, the attendence

list can be shown. - Monitoring / feasibility checklist of personal protective equipment is conducted every month,

from January - August 2016

- HIRAC harvest work and bud / pruning use of of PPE: Rubber boots, glasses, helmets and sarung Egrek.

- Based on the interview on 11 August 2016 with several employees KUD Karya Kita (Sobirin, Basir, Anang and Tukiat), that after training on the use of PPE on 29 June 2016, has

understood the importance of using of PPE to avoid workplace accidents

This Major NC was closed on 15/08/2016

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4.7.4 The responsible person/persons shall be

identified. There shall be records of regular

meetings between the responsible person/s and workers. Concerns of all parties about health,

safety and welfare shall be discussed at these meetings, and any issues raised shall be

recorded.


Mill, estate and scheme smallholders:

The responsible persons have been identified in safety committee structure. The safety committee

has been approved through “Surat Keputusan Kepala Dinas Tenaga Kerja dan Transmigrasi Kabupaten Tanjung Jabung Barat No.560/477/4.3/DSTKT/2015 tentang Pengesahan Perubahan

Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3) pada PT Inti Indosawit Subur Tungkal Ulu” dated may 10, 2016.

Mill manager and Estate Manager is responsible for implementation of safety management system in mill. Appointed safety officer for daily implementation is Mr. Wiratama, who was trained as

safety officer. (official safety training on March 2016, certificate and assignment letter is in process).

Safety meeting has been conducted on monthly basis. Latest meeting was held on March 29, 2016

attended by 14 members, discussing accidents occurred in periode of January - March 2016,

reviewing HIRAC register, discussing top 10 diseases, review near miss, review on job safety analysis, follow up issues from latest meeting.

Yes

4.7.5 Accident and emergency procedures shall exist

and instructions shall be clearly understood by all workers. Accident procedures shall be

available in the appropriate language of the

workforce. Assigned operatives trained in First Aid should be present in both field and other

operations, and first aid equipment shall be available at worksites. Records of all accidents

shall be kept and periodically reviewed.



Procedure for first aid and emergency situation available under “Kesiagaan dan Tanggap Darurat” document, number AA-EMS-447-PR, dated December 2010.

A team for emergency response has been established, headed by Mill Manager and Estate Manager Records of accidents mainatined properly by safety officers and reported regularly to local

authorities.

Adequate first aid officer, equipped with first aid kit has been available in workplace. However by the time audit visit was held, some first aid facility does not available properly: first aid box,

eyewasher in LB3 storage.

Sighted during field visit at Tungkal Ulu Mill that several work places are not equipped with

appropriate and adequate safety such as: - First aid box in workshop is not completed with appropriate and standard item

- Eye washer in temporary hazardous storage is not ready to use

(Minor NC raised)

No

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4.7.6 All workers shall be provided with medical care,

and covered by accident insurance.



Medical care and insurance had been provided to all workers inlcuding non permanent worker.

Each estate has a medical clinic providing basic medical services for workers for free. Accident insurance covered by Jamsostek, as mandated by government regulation

Evidence available in dokumen “rincian iuran tenaga kerja (form 2.a. jamsostek)” for Tungkal Ulu

Mill covering JKK (work accident), JKM (fatality insurance), JHT (Pensions insurance). E.g. For May

2016: 136 workers with total paymnet Rp. 13,xxx,,xxx.-.

However, Company has not planned medical surveillance for all workers into health and safety program (Minor NC raised)

No

4.7.7 Occupational injuries shall be recorded using

Lost Time Accident (LTA) metrics. - Minor compliance –


The accident records available “Indeks K3 Kebun Tungkal Ulu”. E.g. Occupational injuries record for Jan-March 2016, fatality (0), Permanent disabled (0), Lost time (0), Fire (0), Property damage

(0), Medical aid (1), near miss log (8).

Analysis of list time injury frequency rate, total recordable injury frequently rate, list time injury

incident, and average time lost rate available in monthly mill performance report. e.g. fro May 2016: lost time due to injury was 0, lost time due to medical aid was 9 days

Yes

Criterion 4.8 All staff, workers, smallholders and contract workers are appropriately trained.

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4.8.1 A formal training programme shall be in place

that covers all aspects of the RSPO Principles

and Criteria, and that includes regular assessments of training needs and

documentation of the programme.


The company has its own training institution assigned to arrange its training programms. The

training is created annually.

Training programs in 2014 in “Program Pelatihan Environmental and sustainability – 2016, such as:

Estate: - Sustainability Awarenees training for RSPO, ISPO and ISSC

- HCV Training.

- Basic Safety/K3. - Basic Fire.

- First Aider. - Pelatihan operator air (Water Treatment)

- Safety Use herbisida dan chemical - Pelatihan operator air

- Program pelatihan teknis and managerial

Mill:

- Sustainability Awarenees training for RSPO, ISPO and ISSC - HCV Training.

- Basic Safety/K3.

- Basic Fire. - First Aider.

- Penanganan Limbah B3 dan Bahan kimia - Pelatihan operator genset



- Sustainability Awarenees training for RSPO, ISPO and ISSC - HCV Training.

- Basic Safety/K3. - Basic Fire.

- First Aider.

- Penanganan limbah B3 dan bahan kimi. - Safety Use herbisida dan chemical.


Yes

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Training realization in 2016:

Mill: Sighted document of “Program Pelatihan Environmental & Sustainability tahun 2016 of PT. IIS,

Tungkal Ulu Group” covering training plan in Estate, Mill, and Small holder

Estate:

Relevant training in Mill: Sustainability awareness, High Conservation Value (implemented), Basic safety, Basic fire handling, First aider (PPGD), Hazardous waste handling (implemented), Water

Treatment Operator, Genset operator, technical and managerial (implemented). - Refresh SOP pupuk, dated 19/02/206, attended 44 workers.

- Caracter Building, 19/03/2016, attended 126 workers - Pelatihan alat fogging on 04/04/2016, attended 33 workers,

- Pelatihan Backhoe Loader on 04/04/2016, attended 14 workers.

- Pelatihan penanganan limbah B3 dan bahan kimia on 13/04/2016, attended 26 workers. - Pelatihan Sustainability Awereness on 18/04/2016, attended 29 workers,

- Pelatihan HPT on 21/05/2016, attended 31 workers. - Pelatihan Hydraulic System on 25/05/2016, attended 8 workers.

Based on document review in training program 2015, such as: - Pelatihan Penggunaan Pestisida Terbatas on 28/08/2015 by Sygenta, attended 72 participants

(attendance list, photograph and training material are available). - Pelatihan HCV on 16/09/2015, attended 28 participants


KUD Karya Kita:

- Training of limited pesticides on 27th June 2015 was conducted by PT. IIS, attended 20 members.

- Pelatihan K3 on 16th February 2016, attended 14 members. - Pelatihan Panen dan APD, dated 26th March 2016, attended 17 members.

- Pelatihan Pupuk Berimbang, dated 23rd May 2016, attended 30 members.

- Pelatihan pengendalian hama dan penyakit, dated 26th September 2015, attended 23 members.

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KUD Karya Kita:

1. Training of limited pesticides on 27th June 2015 was conducted by PT. IIS, attended 20

members. 2. Pelatihan K3 on 16th February 2016, attended 14 members.

3. Pelatihan Panen dan APD, dated 26th March 2016, attended 17 members. 4. Pelatihan Pupuk Berimbang, dated 23rd May 2016, attended 30 members.

5. Pelatihan pengendalian hama dan penyakit, dated 26th September 2015, attended 23

members.

KUD Harapan jaya: 1. Training Pestsida (Ulat Api) was conducted on 23/10/2015, attended 20 members.

2. Penyuluhan pemupukan was conducted 10/02/2016, attended 28 members. 3. Pelatihan Pestisida Terbatas was conducted on 03/02/2016, attended 30 members.

4. Pelatihan Panen was conducted on 21/01/2016, attended 30 members.

5. Pelatihan hama dan penyakit was conducted on 02/-02/2016, attended 20 members. 6. Pelatihan APD (PPE) was conducted 29/02/2016, attended 30 members.

7. Sosialisasi Replanting was conducted on 13/06/2016, attended 28 members.

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4.8.2 Records of training for each employee shall be

maintained.



Training for each employee has been updated April 2016 as documented in “Personal Data Training

Karyawan PT. IIS – Kebun Tungkal Ulu Asian Agri”, e.g. 1. Ririn Rahayu (Clinic Personnel/nurse), she has attended training Sustainability awereness, basic

fire on 03/10/2014, K3 (15/10/2014), First Aider (15/10/2014 and 20/10/2014) Hiperkes (28/01/2013 – 01/02/2013), Sosialisasi BPJS (29.12/2014).

2. Sudarsono (Spraying Supervisor), he has attended training basic fire (05/04/2011), Basic

Safety (15/03/2011), First Aiders (04/03/2011) and Pelatihan Sprayer (08/11/2014)

Sighted in document verification master list of workers in Tungkal Ulu Mills (136 workers) including information on job position and training status. The information is maintained by HRD and KTU of

mill.

Recorded of training for each employees has been documented in: “Rekap Pelatihan PT. IIS –

Tungkal Ulu” and “Personal Data Training” covering data personal, training, date of training, trainer, etc. e.g.

Interview in ASA-4 reveals that training on safety working practice has been conducted properly for

all workers including hazardous waste handling, safety practice for boiler operators, generators,

sterilizer heavy load vehichle, and others.

Yes

PRINCIPLE 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY

Criterion 5.1

Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement.

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5.1.1 An environmental impact assessment (EIA)

shall be documented.


Mill and Estate:

PT IIS demonstrate Analisis Mengenai Dampak Lingkungan (AMDAL) consist of document ANDAL,

RKL and RPL as approved through “Persetujuan Komisi Amdal Departemen Pertanian No.014/Andal/RKL-RPL/BA/V/1995 tentang Persetujuan ANDAL dan RKL-RPL perkebunan Kelapa

Sawit dan Pabrik Minyak Kelapa Sawit PT Inti Indosawit Subur” dated 3rd May 1995. The document covers scope of areal of 32,000 Ha consist of Kuala Tungkal Estate 20,000Ha and Muara Bulian

Estate 12,000 Ha and palm oil mill capacity 90 Tonnes FFB/hour for Kuala Tungkal and 30 Tonnes

FFB/hour for Muara Bulian.

Revision on AMDAL document is available for PT IIS – Tungkal Ulu through “Surat Keputusan Bupati Tanjung Jabung Barat No.309, year 2009, dated 6th June 2009, for 4,614.02 ha, consist of

3,503.02 ha (SK. Gubernur Kepala Daerah Tingkat I Propinsi Jambi No.342/1987, dated 19th June 1987) and 1,111 ha (SK. Bupati Tanjung Jabung Barat No.746, year 2006, dated 20th October 2006

tetang izin lokasi untuk keperluan pembangunan perkebunan kelapa sawit atas nama PT. IIS, serta

10,277 ha lahan plasma dan kapasitas pabrik kelapa sawit 60 ton TBS/jam”.

Smallholder Scheme:

Each KUD visited has copy of Environmental Impact Assessment Document. Smallholders

interviewed does understand the environmental impact from their oil palm plantation operation, and also able to demonstrate knowledge of impact mitigation.

Yes

5.1.2 Where the identification of impacts requires changes in current practices, in order to

mitigate negative effects, a timetable for

change shall be developed and implemented within a comprehensive management plan. The

management plan shall identify the responsible person/persons.


Mill, Estate and Scheme Smallhoders

Identification of impact and management plan were detailed in AMDAL and it has been submitted to

the authorities regularly (every 6 months), the last implementation of EIA management plan for period June 2015 – December 2016 was submitted on 22nd February 2016 (the evidence of

acceptance by authorities is evidence).

Yes

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5.1.3 This plan shall incorporate a monitoring

protocol, adaptive to operational changes,

which shall be implemented to monitor the effectiveness of the mitigation measures. The

plan shall be reviewed as a minimum every two years to reflect the results of monitoring and

where there are operational changes that may

have positive and negative environmental impacts.


Mill, Estate and Scheme Smallhoders

Identification of impact and monitoring plan were detailed in AMDAL and it has been submitted to the authorities regularly (every 6 months), the last implementation of EIA management plan for

period June 2015 – December 2016 was submitted on 22nd February 2016 (the evidence of acceptance by authorities is evidence).

Yes

Criterion 5.2

The status of rare, threatened or endangered species and other High Conservation Value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and operations managed to best ensure that they are maintained and/or enhanced.

5.2.1 Information shall be collated in a High

Conservation Value (HCV) assessment that includes both the planted area itself and

relevant wider landscape-level considerations

(such as wildlife corridors).


Estate: PT IIS – Tungkal Ulu has carried out Initial HCV assessment by RSPO’s HCV approved assessor from Agriculture University of Bogor, Indonesia on October 2011. The presence of HCVs at PT IIS Tungkal Ulu is mainly under category HCV 1.2 and HCV 4.1 and HCV 6 with total HCV areas of 128.32 Ha; where mostly the identified HCV areas were determined as riparian area. The HCV 1.2 along Benanak river (81.90 ha) was found flora “Pinang Merah/Chyrtotachys lakka).

The company has appointed dedicated – trained personnel, Mr. Ar as person in charge for HCV management as specified under Manager Memorandum /EST/KTU/MEMO/V/2014, dated 1st

September 2014. Scheme Smallholders: HCV identification in scheme smallholders areas is incorporated in the company HCV identification report, there was identified HCV 6 (5.25 ha) The company has trained the scheme smallholders members for HCV in particular protected RTEs and display HCV and RTEs sign board in cooperative office and interview with members confirmed that they aware and understand to protect HCV areas and RTEs.

Yes

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5.2.2 Where rare, threatened or endangered (RTE)

species, or HCVs, are present or are affected by

plantation or mill operations, appropriate measures that are expected to maintain and/or

enhance them shall be implemented through a management plan.


Estate and Scheme smallholders:

Based on field visit, PT IIS – Tungkal Ulu demonstrate efforts to protect rare species and its habitat

through planting of wooden tree, HCV area patrol, flora and fauna monitoring. There were found RTEs during HCV identification, such as: 1 mammals with status Vulnerable (Vu) is “Babi Jenggot”

(Sus barbatus) and Beruk (Macaca nemestrina) as well as 1 species mammals with status Endangered is “Trenggiling” (Manis Javanicus).

The company has conducted monitoring oh HCV areas and RTEs identification, the last monitoring for period July – December 2015, there was no found RTEs.

Management and monitoring of HCV is reported in RKL RPL every six month.

The Estates have maintained notice-boards at the entrance to the properties and next to buffer

zones or worker housing to prohibit the capture or hunting of fauna and disturbance of vegetation.

PT IIS – Tungkal Ulu created posters listing all protected flora and fauna, endangered and

threatened species and placed on location accessible to public such as Estate offices, worker housing, village offices as well as entrance way to plantation area.

The company also has communicated to the workforce related HCV area, e.g. Socialization of HCV on 27th February 2014, attended 30 workers and 16th June 2014, attended 58 workers.

The company has appointed dedicated – trained personnel, Mr. Ar as person in charge for HCV

management as specified under Manager Memorandum /EST/KTU/MEMO/V/2014, dated 1st September 2014.

The company has trained the scheme smallholders members for HCV in particular protected RTEs and display HCV and RTEs sign board in cooperative office and interview with members confirmed

that they aware and understand to protect HCV areas and RTEs.

Yes

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5.2.3 There shall be a programme to regularly

educate the workforce about the status of these

RTE species, and appropriate disciplinary measures shall be instigated in accordance with

company rules and national law if any individual working for the company is found to capture,

harm, collect or kill these species.



The company also has communicated to the workforce related HCV area, e.g. Socialization of HCV

on 9th June 2015, attended 28 workers / teachers and for scheme smallholders members was conducted on 16th September 2015, attended 30 members.

Interview of workers and smallholders members confirmed that PT IIS Tungkal Ulu had carried out

awareness on HCVs and they able to demonstrate knowledge of HCV areas and RTEs.

Scheme smallholders also appointed the responsible person to monitor HCV and RTEs, e.g. in KUD

Karya Kita (Mr. Sarmin) as KUD letter no. No. 002/Kpts/KUD-KY/VI/2015 tentang Penunjukan/Pengangkatan Petugas Pengurus Perlindungan Satwa dilindungi, dated 02nd June 2015.

Yes

5.2.4 Where a management plan has been created

there shall be ongoing monitoring: The status of HCV and RTE species that

are affected by plantation or mill

operations shall be documented and reported;

Outcomes of monitoring shall be fed back

into the management plan.


Estate: The company was conducted monitoring of RTEs monthly as documented in “Daftar Temuan Satwa Liar Bulanan di Areal Lindung” and monitoring of HCV, documented in “Tabel Monitoring Kerusakan Kawasan Lindung” the last report period June – December 2015, there was no found RTEs. The company has implemented management and onitoring of HCV areas, such as: regular patrol, erected sign board, no applied chemical along riparian zones. Scheme smallholders: The HCV personil has conducted monitoring of HCV and RTEs monthly and reported, based on review RTEs monitoring report in May 2016, there was no found RTEs.

Yes

5.2.5 Where HCV set-asides with existing rights of

local communities have been identified, there shall be evidence of a negotiated agreement

that optimally safeguards both the HCVs and

these rights.


Inti dan Smallholder Scheme;

All HCV and conservation areas within the company and smallholders areas.

Yes

Criterion 5.3

Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.

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5.3.1 All waste products and sources of pollution shall

be identified and documented.


Mill and Estate:

Waste and pollution sources have been identified and documented, including used lubricant and

filter, old battery, used laboratory chemical, clinical/medical waste, mill effluent, EFB, smoke, dust, fiber and shell, empty agrochemical container, boiler ash, scrap iron, used tires, waste water and

domestic household refuse. Record of identification was presented in “Evaluasi Aspek Dampak Lingkungan” EMS-431-003-LT issued 11th June 2015.

The company started at the beginning this year to re-cycle anorganic waste where the company builded the waste storage.


Waste product and sources of pollution is identified and documented in “Identifikasi Sumber Polusi”, update June 2015, and consist of activities/pollution sources, identified pollution, impac

Yes

5.3.2 All chemicals and their containers shall be

disposed of responsibly.


Mill:

The company store hazardous waste in temporary storage with permit No.660/476/IX/BLHD/2014, dated 23rd September 2014 by Bupati Tanjung Jabung Barat and disposed the hazardous waste to

the registered collectors (PT. Berkah Anugerah Ilahi) approval from Environmental Ministry No. 89

year 2011 dated May 5th 2011. Transported by registered transporter (PT. Shali Riau Lestari) approval from Environmental Ministry No.237 year 2011, dated 8th November 2011).

SOP available in document number AA-KL-06-EFP regarding Handling of Hazardous Waste (B3).

Contarct between company and PT. Berkah Anugerah Ilahi number 162/SPK/IISJMB-SRL-

BAI/III/2016 dated March 20th, 2016. Contract with PT. Shali Riau Lestari as transporet Number

059/SRL-PKU/MOU/II/2016, dated 9th February 2016.

Log book and balance of hazardous waste in Mills available properly and reported regularly to Local Authorities on April 11th, 2016. Example of balance for periode of January – March 2016 is as

follows:

1. Delivered to registered third party: Used lubricant 330 liter, Contaminated lubricant (70 liter), Used electronic material (0 pcs), used oil filter (24 pcs), Used Chemical Container (120 pcs),

Used battery (3 pcs), Used bulb (9 pcs). 2. Stock in storage as per May 2016: Used lubricant (216 liter), Contaminated lubricant (70 liter),

Used electronic material (0 pcs), used oil filter (12 pcs), Used Chemical Container (140 pcs),

Used battery (0 pcs), Used bulb (4 pcs), contaminated fabrics (13 pcs).

Yes

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The company store hazardous waste in temporary storage with permit from BLHD Kabupaten

Tanjung Jabung Barat no. 660/487/IX/BLHD/2009, valid until 28 September 2019. The company disposed the hazardous waste / chemical and their containers to the registered collector (PT. Shali

Riau Lestari (approval permit from Environmental Ministry no. 237 Tahun 2011 – valid until 7th November 2016) and agreement PT. Shali Riau Lestari and PT. IIS no. 030/SRL-PKU/MOU/III/2015.

Sample taken: Hazardous waste is disposed to register collector (PT. Shali Riau Lestari):

Date Manifest no. Type of Hazardous waste

Quantity

08/09/2016 0004902 Used Filter 2 drums

0004903 Used Accu 20 pcs

0004817 Empty container pesticides

4 drums

0004904 Medical waste 0.5 drum

0004902 Used oil 5 drums

31/03/2016 0006455 Used oil 9 drums

0006466 Used Accu 29 pcs

0006467 Medical waste 0.5 drum

0006463 Contaminated oil 2 drums

0006465 Empty container pesticide

6 drums

0006455 Used Filter 2 drums

Each type of hazardous waste also is recorded in storage and balancing stock is monitored regularly, balancing stock is available in “Gudang Limbah B3.

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5.3.3 A waste management and disposal plan to

avoid or reduce pollution shall be documented

and implemented.


Mill:

Waste and pollution sources have been identified and documented, including used lubricant and

filter, old battery, used laboratory chemical, clinical/medical waste, mill effluent, EFB, smoke, dust, fiber and shell, empty agrochemical container, boiler ash, scrap iron, used tires, waste water and

domestic household refuse.

Record of identification was presented in “Evaluasi Aspek Dampak Lingkungan” EMS-431-003-LT

issued 11th June 2015. The company started at the beginning this year to re-cycle anorganic waste where the company builded the waste storage.


Waste management plan is documented in “Rencana pengelolaan Limbah”. Waste management consists of medical waste, domestic waste, and hazardous waste to reduce pollution into the

environment.

Hazardous and medical waste is disposed to the register collector, while domestic waste disposed to

the landfill, organic and anorganic waste is separated in linesite, organic waste to the landfill and some of anorganic waste is collected in “Bank Sampah” for re-cycle purposes.

Yes

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Criterion 5.4

Efficiency of fossil fuel use and the use of renewable energy is optimised.

5.4.1 A plan for improving efficiency of the use of A plan for improving efficiency of the use of

fossil fuels and to optimise renewable energy

shall be in place and monitored.


Mill, Estate and Scheme smallholders: 1. Company policy on December 2014: Monitoring of emission and exploration of mitigationof GHG

emission through renwable energy usage.

2. Procedure on solid waste usage for renewable energy in document number AA-KL-05-EFP dated Feb 1, 2008 regarding Handling of Non B3 Industrial Waste.

Fossil fuel use records are maintained, and the trends is analyzed. e.g. Fossil fuel usage up to May

2016 (5 months) is 69,626 liter. Recent 5 months trend is increasing due to shortage of FFB supply (renewable energy ) from estate as effect of prolonged dry season in year 2015.

Energy use records include accurate measurements of renewable energy use per tonne of FFB processed. Company already maximise the renewable energy use. All the shell and fibre is

consumed internally as boiler fuel.

Mill is in progress of establshing Biogas Plant with capacity of 2.4 MW, projected to be finished in

year 2017.

Yes

Criterion 5.5

Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice.

5.5.1 There shall be no land preparation by burning, other than in specific situations as identified in

the ‘Guidelines for the Implementation of the

ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.


Mill, Estate and Scheme smallholders: Based on field visit in replanting area, it was noted no any open burning.

Yes

5.5.2 Where fire has been used for preparing land for

replanting, there shall be evidence of prior

approval of the controlled burning as specified in ‘Guidelines for the Implementation of the

ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.


Mill, Estate and Scheme smallholders:

Based on field visit in replanting area, it was noted no any open burning.

Yes

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Criterion 5.6

Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

5.6.1 An assessment of all polluting activities shall be conducted, including gaseous emissions;

particulate/soot emissions and effluent (see Criterion 4.4).


Mill, Estate and Scheme smallholders: The company has conducted assessment on all source of pollution has been identified through:

1. Environmental Impact Assessment, identified major and significant sources of pollution at mill such as: boiler emission, generator emission, POME,

2. GHG inventory, in accordance to RSPO standard of GHG inventory. The document mentions

various sources of pollution: landuse change (land clearing for plantation), fertilizer (Amonium nitrate, Ground Magnesium Limestone, Ammonium Sulphate, Urea, AC, Kieserite, MOP, GRP,

TSP), POME, electricity, Fuel, EFB.

Yes

5.6.2 Significant pollutants and greenhouse gas

(GHG) emissions shall be identified, and plans

to reduce or minimise them implemented.



For calculation of GHG emission, management unit has prepared all relevant and important records

such as: GHG calculation standard by RSPO, fertilizer uses, fossil fuel uses, alernative energy uses, land clearing records, soil type ma to identify existance of peat, tree planting data, electricity uses,

POME production, etc.

Plan for mitigation has been incorporated in waste management procedures, such as: use of

renewable energy, tree planting, organic fertilizer, etc. Tungkal Ulu Mill is also in progress of establshing Biogas Plant with capacity of 2.4 MW. The plant is projected to be finished in year 2017.

As mentioned in indicator 4.4.3, POME treatment has been recorded under following records:

Layout of10 units of pond with total capacity of 89,074 m3, SOP of WWTP operations, SOP of Land application, POME quality monitoring and reporting.

Yes

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5.6.3 A monitoring system shall be in place, with

regular reporting on progress for these

significant pollutants and emissions from estate and mill operations, using appropriate tools.



System for monitoring of emission available in:

Periodic environmental monitoring plan (6 month) according to EIA document covering: boiler emission, generator emission. Method and equipemnt used for emission monitoring refers to

applicable national standard of emission monitoring as determined by EIA study. Latest monitoring done in second half of 2015 by an accredited laboratory “Binalab – North Sumatera.

Result of emission monitoring are reported to local authorities twice in a year. Latest report available for second half of year 2016. Sample of the monitoring result are as follows:

Par Generator 1 Generator 2 Threshold*

Sox 74,8 78,9 800

Nox 69,5 89,3 1000

Particulate 68,5 69,2 150

Opacity 28 25

CO2 8,6 8,3

O2 12 13

Noise 62,6 66,3 85

Threshold: KepmenLH 13/2009

Result of Boiler emission Test

Par Boiler 1 Boiler 2 Boiler 3 Threshold*

Sox 94.2 101 89.1 600

Nox 100 95 78.4 800

NH3 0,04 0.04 0.05 1

HCl 1.6 1.7 1.2 5

HF 1.07 1.32 1.44 8

Particulate 157 124 135 300

Opacity 17 18 20 30

Noise 69.1 70.9 72.2 85

Threshold: Kepmen LH 07/2007

Yes

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Green house gas calculation and inventory using standard method from RSPO (Palm GHG

calculator). Result of inventory has been shared with RSPO secretariate. In addition, The company

has prepared a strategy in effort to reduce and mitigate pollution and emission. Monitoring of pollution and emission quality for plantation has been planned and implemented, e.g. air quality

ambient for boiler and Genset, water quality test for river (upstream and downstream), effluent water quality, noise, etc, e.g.

PRINCIPLE 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLERS

Criterion 6.1

Aspects of plantation and mill management that have social impacts, including replanting, are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement.

6.1.1 A social impact assessment (SIA) including

records of meetings shall be documented.


Mill and Estate:

Social Impact Assessment available and mentioned within frame references of AMDAL. SEIA was prepared by Lemlit Unja. Tungkal Ulu Group prepared SIA assessment by including scheme

smallholding through Bogor Agriculture University dated June 2011 as supplement to AMDAL document.

Scheme smllholders: Copy of AMDAL and Social Impact Assessment is available at KUD.

Yes

6.1.2 There shall be evidence that the assessment

has been done with the participation of affected parties.



In the social impact assessment document, it is described that the social impact assessment prepared through interviews, focus group discussion and questionnaire filling. The targeted

audience is local communities, surrounding villages, smallholder members and employees of PT Inti Indosawit Subur – Tungkal Ulu.

Yes

6.1.3 Plans for avoidance or mitigation of negative impacts and promotion of the positive ones,

and monitoring of impacts identified, shall be developed in consultation with the affected

parties, documented and timetabled, including

responsibilities for implementation.


Mill, Estate and Scheme smallholders: Social impact assessment document has prepared a study covering relation between company and

the social-economic interaction with the surrounding stakeholders, perception; hope, of local communities, land ownership structures, negative and positive impacts.

The plantation and scheme smallholders have prepared social management plan, covering a

number of activities such as FFB sortation standard, road maintenance programme, smallholder organization empowerment, replanting saving, training and communication, manpower legality, etc

Yes

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6.1.4 The plans shall be reviewed as a minimum once

every two years and updated as necessary, in

those cases where the review has concluded that changes should be made to current

practices. There shall be evidence that the review includes the participation of affected

parties.



Social program evaluated on 6-monthly basis. This evaluation process presented in the “Laporan

RKL/RPL”. The social program implemented by company reported for period July – December 2014 to Kabupaten Tanjung Jabung Barat.

Yes

6.1.5 Particular attention shall be paid to the impacts of smallholder schemes (where the plantation

includes such a scheme).


Mill and Estate: The social impact assessment does take a particular proportion for Smallholder development, in the

social impact assessment document.


Cooperative leaders and smallholders interviewed states that social management plan was prepared in coordination with PT IIS. The social management plan has been continuously implemented.

Yes

Criterion 6.2

There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

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6.2.1 Consultation and communication procedures

shall be documented.


Estate:

The company has developed a mecahisme of consultation and communication as outlined in “SOP

Penanganan Permintaan Informasi Stakeholder (No. SOP; AA-GL-5008.1-R1), dated 22 August 2011, which outlines a procces of corporate response to any request of information that submitted

by stakeholders, including the timing of information request within 14 days after receiving the information. Retention time of the records informasi is 3 years after meeting.

The organization has up dated the master list document on 1 June 2016 which in regulated a specific, including the retention time for each document, e.g. retenten time for “SK Pelepasan

Kawasan Hutan from Menteri Kehutanan No. 494/Kpts-II1991, kept by the company for a period “continuous”, and Document of “Pendaftaran LKS Birpartit” kept for 3 years.

Smallholder Scheme:

Schemesmallholders has mechanismes of communication, consultation and complaints issued on 3rd January 2011, that outlines the flow chart of process of delivering information from stakeholder

including complaint and consultation/communication. The Mechanismes of communication, consultation and complain are availabe in KUD’s office.

Yes

6.2.2 A management official responsible for these

issues shall be nominated.


Mill and Estate:

The company has appointed Mr Sukardi (assistan Humas PT IIS Tungkal Ulu) by letter from Region Head Plt 3 Jambi No. 012/HR-RO3/Memo/01/2014 dated January 29, 2014, concerning to

assignment territory that describes the territory of Mr Sukardi including PT IIS Tungkal Ulu and PT IIS Muara Bulian. The assignment letter since on February 1, 2014.

Smallholder Scheme:

KUD Karya Kita has appointed Mr Asral Yasman as the officer responsible for communicating with

stakeholders as in assigmennt letter No 001/Kpts/KUD-KK/VI/2014 dated June 2, 2014. And KUD Harapan Jaya has appointed Mr. Nasrul as officer that responsible for communicating with

stakeholder as in letter of assigment No 002/Kpts/KUD-HJ/II/2014, dated February 2, 2014.

Yes

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6.2.3 A list of stakeholders, records of all

communication, including confirmation of

receipt and that effort are made to ensure understanding by affected parties, and records

of actions taken in response to input from stakeholders, shall be maintained.


Mill and Estate:

The organization have a list of stakeholders that updated every year, the last updated of

stakeholders list on 25th April 2016, that PT IIS Tungkal Ulu has established communication with stakeholders, consist of:

a. 38 stakeholders both in village and subdistrict, e.g. head of Merlung district, head of Renah district, head of Muara Papalik district, Merlung village, head of Merlung village, head of Adi

Puwo village, head of KUD, etc.

b. 18 stakeholders in province, e.g: governor of Jambi, Dinas Perkebunan Provinsi Jambi, BLHD Provinsi Jambi, Dinas Kehutanan Provinsi Jambi, Pengadilan Hubungan Industrial Provinsi Jambi,

Jambi Independent, Jambi Ekspres, Gapki, Apindo provinsi Jambi, etc c. 10 stakeholders in Tanjung Jabung Barat district, e.g: Dinas Perkebunan Kabupaten Tanjung

Jabung Barat, Kantor BPN Kabupaten Tanjung Jabung Barat, BLHD Kabupaten Tanjung Jabung Barat etc.

The record of communication and consultation are documented by Humas Division, as available in “Buku Agenda Surat kelaur PT IIS Tungkal Ulu Estate and Buku Tamu” for oral communication,

such as: - “Buku Surat Keluar”, there are 92 type of outgoing mail during period January – June 2016.

- “Buku Tamu” there are 9 types oral communication since 2015 to 2016, e.g. communication

with Gapoktan in Pulau Pauh village on January 2016 for RAT invitation.

Smallholder Scheme: KUD Karya Kita:

KUD Karya Kita has developed “Name List of KUD Stakeholder” and always updated, such as in List of Stakeholders in June 2016 are indentified 30 stakeholder, e.g: Kepala Desa Bukit Harapan, BRI

Unit Merlung, LSM Lembaga Pembantu Perlindungan Tenaga Kerja, PUSKUD Jambi, Dinas

Perkebunan Kabupaten Tanjung Jabung Barat, etc.

Record of communication is documented in “Buku Permintaan Informasi External”, in 2016 there were noted 10 communication both incoming and outgoing mail.

Yes

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KUD Harapan Jaya:

KUD Harapan jaya has developed list of stakeholder in “Name List of KUD Stakeholder”, the last

updated in May 2016 are indentified 35 stakeholder, e.g: Kepala Desa Kemang Manis, BRI Unit Rantau Badak, LSM Lembaga Pembantu Perlindungan Tenaga Kerja, PUSKUD Jambi, Dinas

Perkebunan Kab. Tanjung Jabung Barat, etc.

Record of communication is documented in “Buku Permintaan Informasi External”, in 2016 there

were noted 15 communications both incoming and outgoing mail.

Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties.

6.3.1 The system, open to all affected parties, shall resolve disputes in an effective, timely and

appropriate manner, ensuring anonymity of

complainants and whistleblowers, where requested.


The company has developed a mechanism to handling complains consist of “Prosedur Penanganan Keluhan dari Eksternal” as regulated in Document No. SOP AA-GL-5005-RO 01, meanwhile to

handling of internal complains are regulated through “Mekanisme Penyampaian Keluhan dan

Penyelesaian Keluhan Karyawan”, as in document in SOP No. SOP. AA-HR-308 0.5-RO).

The company also has developed “Mekanisme Jaminan Pelapor dan Pengungkapan Kasus” that complied by Humas Division of PT IIS Tungkal Ulu on June 12, 2015. In those mechanisms

describes a policy to confidentiality of the reporter or wistleblowers if requested.

Smallholder Scheme: KUD Sawit Kita dan KUD Harapan Jaya have mechanismes of communication, consultation and

complaints that describes a flow chart of processes for delivering from information from stakedholder including to handing complaints and communication/consultation.

Yes

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6.3.2 Documentation of both the process by which a

dispute was resolved and the outcome shall be

available.


The company has documented for each complaints or disputes, such as:

a. External complaint is documented in Logbook “Komplain dan Aspirasi Masyarakat”, in 2015,

there were 9 complaints/communications received, e.g. fro Merlung village dated 20th February 2015 related “permohonan bantuan” as letter No. 474/159/2020/2015 and it has been

addressed by the company on 18th March 2015. b. Employee or Internal complaints is documented in monitoring log book, there were 15

complaints/communication were received in 2015, e.g. from Mr Iin Priyono on 16th February

2016, related to house maintenance (Form AA-308.5/01-HR), it has been followed up by the company through improvement that were complited on 16th February 2015 accordance form AA-

308.5/02-HR signed by employee who complaint to manager.

Smallholder Scheme: Record of complaints is documented in “Buku Rekaman Keluhan, Penanganan dan Pelaporan”, in

2016 there were 10 incoming complaints, it were been response appropriately.

Yes

Criterion 6.4

Any negotiations concerning compensation for loss of legal, customary or user rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions..

6.4.1 A procedure for identifying legal, customary or user rights, and a procedure for identifying

people entitled to compensation, shall be in

place.


Estate: PT IIS Tungkal Ulu has mechanism for identification and compensation calculation was based on

Land Conflict handling, SOP No.AA‐ GL‐ 5003.1‐ R1. The SOP comprise of land conflict mechanism

and land compensation, with the participation of affected communities.

Scheme smalholders:

Each KUD has a mechanism to handle land conflict under Communication and Consultation Mechanism, involving KUD chairman and meeting with all KUD members.

Yes

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6.4.2 A procedure for calculating and distributing fair

compensation (monetary or otherwise) shall be

established and implemented, monitored and evaluated in a participatory way, and corrective

actions taken as a result of this evaluation. This procedure shall take into account: gender

differences in the power to claim rights,

ownership and access to land; differences of transmigrants and long-established

communities; and differences in ethnic groups’ proof of legal versus communal ownership of

land.


Estate:

PT IIS Tungkal Ulu has mechanism for identification and compensation calculation was based on

Land Conflict handling, SOP No.AA‐ GL‐ 5003.1‐ R1. The SOP comprise of land conflict mechanism

and land compensation, with the participation of affected communities, included calculation

compensation.

There were no land disputes.

Scheme smalholders:

Each KUD has a mechanism to handle land conflict under Communication and Consultation

Mechanism, involving KUD chairman and meeting with all KUD members.

Yes

6.4.3 The process and outcome of any negotiated agreements and compensation claims shall be

documented, with evidence of the participation of affected parties, and made publicly available.


Estate: PT IIS Tungkal Ulu documented the process and outcome of resolved compensation. These

documents are available for public, with management approval.

There were no noted land disputes


Each cooperative/KUD sampled has a form to record compensation. However, there is no compensation since smallholder oil palm blocks established. The land given by government under

PIR-Trans programme. Therefore, no land compensation process to customary land owner or previous legal owner, since the land was state land. All smallholder members of cooperative

granted with land rights/SHM

Yes

Criterion 6.5

Pay and conditions for employees and for contract workers always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

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6.5.1 Documentation of pay and conditions shall be

available.


Estate:

The company determines minimum wages based on the Government regulation every year, the

minimum wages in 2015 as regulated in “Surat Keputusan Governor of Jambi no. 460/KEP.GUB/DISSOSNAKERTRANS/2015, dated 30th October 2015 is Rp. 1,906,650,-/month which

effective from 1st January 2016.

Based on review of payments slip, there is no worker paid below minimum wages, e.g. payment slip

in April 2016

Name Kustini (PHL) Fitriana (PHL)

Basic Salary 21 day @76,256 = 1,601,586 18 day @76,256 = 1,372,788

OT - -

Premi/Fee 86,000 91,000

Deduction

BPJS

Ketenagakerjaan

16,016 16,016

BPJS Kesehatan

Basic Salary above excluded rice allowance: 15 kg/employees, wife 9 kg, children 7.5 kg/each for 3 children (rice price; Rp. 8.350/kg in April 2016)

Based on review document of list payment, it was found that the company has paid salary as

regulated by government.


KUD Manunggal Jaya The coopretaives determines minimum wages based on the Government regulation every year, the

minimum wages in 2015 as regulated in “Surat Keputusan Governor of Jambi no.

460/KEP.GUB/DISSOSNAKERTRANS/ 2015, dated 30th October 2015 is Rp. 1,906,650,-/month which effective from 1st January 2016.

Mill:

For 2016, the company determines minimum wages based on the Government regulation “Surat

keputusan Gubernur Jambi no. 460/Kep. Gub/DISSOSNAKERTRANS/2015 dated 30th October 2015 is Rp. 1,906,000, -/month (SKU-Lepas) and Agreement BKS – PPS and Pengurus Daerah FSP.PP-

SPSI, dated march 8, 2015 Rp. 1,937,000 (SKU Harian dan Bulanan)

Yes

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Based on review of payments slip, there is no worker paid below minimum wages as determined

above, e.g:

1. Payment slip in May 2015 for Mr. BR (SKU Bulanan) is Rp. 2,117,000 (Basic salary) + overtime + rice allowance + production allowance - BPJS, total is Rp. 3,420,911.

2. Mr. TA (SKU Harian), basic salary Rp. 64,657 per day (31 days) + overtime + production premi - BPJS , total Rp. 3,196,921.

3. Mr. KES (Temporary workers): basic salary Rp. 76,266 (25 days) + production premi - BPJS

(Total salary is Rp. 4,400,595).

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6.5.2 Labour laws, union agreements or direct

contracts of employment detailing payments

and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday

entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be

available inthe languages understood by the

workers or explained carefully to them by a management official.


Mill:

Worker Agreement (PKB) between company and labour union is referred in working regulation,

Worker Agreement was registered by Dirjen Pembinaan Hubungan Industrial dan Jaminan Sosial Tenaga Kerja No. Kep.88/PHIJSK-PKKAD/PKB/VI/2015, dated 18th June 2015 (Valid 21st April 2015 -

20th April 2017) Based on document review, it was noted that term and condition, such as working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal,

period of notice, etc, are covered in PKB and contracts which have been signed by labour union.

All employees also has signed contract with detail term and condition, included temporary workers,

e.g. 1. Contract with employee Mr. KES, no IIS/PTU/SPK-WT/VIII/2015 as PKWT started July 1, 2015

until June 30, 2016. Mr. KES works as Non Permanent Daily Worker for more than 3 months with 25 working days per month.

2. Contract with employee Mr. PPL, number IIS/PTU/SPK-WT/VIII/2015 as PKWT started July 1,

2015 until June 30, 2016. Mr. PPL works as Non Permanent Daily Worker for more than 3 months with 25 working days per month.

Contract with employee Mr. Rhm, number 001/SPK/PTU/I/2014 as Permanent Staff on January 30th, 2014. Complete clauses and signed by both parties.

Estate: Worker Agreement (PKB) between company and labour union is referred in working regulation,

Worker Agreement was registered by Dirjen Pembinaan Hubungan Industrial dan Jaminan Sosial Tenaga Kerja No. Kep.88/PHIJSK-PKKAD/PKB/VI/2015, dated 18th June 2015 (Valid 21st April 2015 -

20th April 2017) Based on document review, it was noted that term and condition, such as working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal,

period of notice, etc, are covered in PKB and contracts which have been signed by labour union.

All employees also have signed contract with detail term and condition, included temporary

workers, e.g. contract with Mrs. Maimunah Lubis, no 01/GM/SPK-KSN/VII/2015, dated 01st July 2015, Edisam Saputra Saragih; contract no. 01/GM/SPK-KSN/I/2016, dated January 2016,

Saparuddin, contract no. 01/GM/SPK-KSN/I/2016, dated January 2016.


Contract between KUD and workers is available and signed by both parties, the KUD workers only 1 -3 staffs.

Yes

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6.5.3 Growers and millers shall provide adequate

housing, water supplies, medical, educational

and welfare amenities to national standards or above, where no such public facilities are

available or accessible.


Mill and Estate:

Sighted in field visit to mill housing complex that adequate facilities has been available for mill

workers, including: housing for staff, housing for workers (permanent and temporary), electricity from mill grid, clean water supply from water treatment plant (available for entire year), medical

service in compay’s clinic, primary level education facility, religion and worhsipment facility, and sport.

Revealed from interview with sample 10 workers from grading station, water treatment plant, enginer room, boiler, as well as mill emplasment resident, that so far no serious complaint

regarding provision of basic facility by company.

Scheme Smallholers: The KUD does not provide housing, water supply, electricity, etc, since their workers living in their

own house which located in surrounding scheme smallholers plots.

Yes

6.5.4 Growers and millers shall make demonstrable efforts to monitor and improve workers’ access

to adequate, sufficient and affordable food.


Mill, estate and Scheme Smallholders: The company preparing traditional market within the company areas and also 2 cooperatives which

prepare basic need for workers and traditonal market in each KUD is provided by local government.

Yes

Criterion 6.6 The employer respects the rights of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and

collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

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6.6.1 A published statement in local languages

recognising freedom of association shall be

available.


Mill and Estate:

Freedom of association policy is written in Bahasa Indonesia, so that all employees can understand

as stated in “Kebijakan Perusahaan”, dated 01st December 2014 “Menghormati hak setiap karyawan untuk membentuk atau menjadi serikat pekerjasesuai dengan keinginannya dan untuk melakukan

tawar menawar secara kolektif”

This policy has been informed to all employees and being placed into public area easlily accessed.

The company also has involved to form labour union for workers, named “PUK SPSI PT. GM/SSL” .


Freedom of association policy documented in “Kebijakan Koperasi”, which state that: Menghormati hak setiap karyawan untuk membentuk atau menjadi anggota serikat pekerja sesuai dengan

keinginannya dan untuk melakukan tawar menawar secara kolektif”

Yes

6.6.2 Minutes of meetings with main trade unions or workers representatives shall be documented.


Estate and Mill: There is labor union namely “Serikat Pekerja Mandiri”. Latest meeting of SPM was held on June

10th, 2016 attended by 9 officials of SPM. Discussion topics covers the following : status of daily

worker, electricity shortage, medical availability, etc.

Scheme Smallholders: There is no labour union is scheme smallholders / KUD level, however the KUDs given to the

workers to become labour union members freely.

Yes

Criterion 6.7 Children are not employed or exploited.

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6.7.1 There shall be documentary evidence that

minimum age requirements are met.


Mill and Estate:

Sighted company’s policy dated 1st January 2014 which stated that Children (under 18 years) are

not allowed to work in any process and activites in company. There are numbers of children worker prohibition signboards installed at public spaces, estate, mill, as well as scheme smallholder’s

office.

Updated employee data on May 2016 shows that Minimum age requirement are met. Age

distribution are as folows: 18-20: 4 ; 21-25: 16; 26-30: 22; 31-35: 21; 36-40: 27; 41-45: 15; 46-50: 8; 51-55: 5. This has been confirmed with field visit to Tungkal Ulu Mill and Estates.

Scheme smallholders: Child labour policy is documented in “Kebijakan Koperasi” which state that: “Melarang anak anak bekerja dalam setiap kegiatan KUD“ (It is not allowed all children to work in every activities/processes in the KUD). Based on field visit, there was no found children worked in KUD and farmer’s plantation

Yes

Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

6.8.1 A publicly available equal opportunities policy including identification of relevant/affected

groups in the local environment shall be documented.


Mill and Estate: Equal Opportunity policy is written in Bahasa Indonesia, so that all employees can understand as

stated in “Kebijakan Perusahaan”, dated 01st December 2014 “Memperlakukan karyawan secara adil, baik dalam hal penerimaan, penilaian, kondisi dan lingkungan kerja, serta keterwakilan tanpa

memandang ras, suku, kasta, asal negara, agama/kepercayaan, cacat, jender, orientasi seksual,

keanggotaan serikat pekerja, afiliasi politik dan/atau umur.

Scheme smallholders: Child labour policy is documented in “Kebijakan Koperasi” which state that: “Memperlakukan

karyawan secara adil, baik dalam hal penerimaan, penilaian, kondisi dan lingkungan kerja, serta keterwakilan tanpa memandang ras, suku, kasta, asal negara, agama/kepercayaan, cacat, jender,

orientasi seksual, keanggotaan serikat pekerja, afiliasi politik dan/atau umur”

This policy has been informed to all employees and being placed into public area easlily accessed.

Yes

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6.8.2 Evidence shall be provided that employees and

groups including local communities, women,

and migrant workers have not been discriminated against.


Mill, estate and Scheme smallholders:

Interviews of male and female workers confirmed that the company anti-discrimination policy was

strictly enforced. They were not aware of any cases of discrimination, e.g. document review of salary payment did not find any evidence of discrimination.

Yes

6.8.3 It shall be demonstrated that recruitment selection, hiring and promotion are based on

skills, capabilities, qualities, and medical fitness necessary for the jobs available.


Mill, estate and Scheme smallholders: The company has procedure hiring workers regulated that hiring and promotion of workers based

on skill, work experiences, and job evaluation. This fair treatment also mentioned in Company Regulation and company policy.

Implementing of the policy, e.g. the company was conducted medical check up for 14 temporary

staffs who will be promoted as permanent staffs. Interview with Mr. PM (one candidate) showed

that the recruitment process is fair and no indication of discrimination.

The company complies to regulation of minimum age has been determined 18 years. Employee data seen that no employee under 18 years old working at mill. This has been confirmed with field

visit to Tungkal Ulu Mill and Estates.

Yes

Criterion 6.9 There is no harassment or abuse in the work place, and reproductive rights are protected.

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6.9.1 A policy to prevent sexual and all other forms of

harassment and violence shall be implemented

and communicated to all levels of the workforce.


Mill and Estate:

The company has policy to prevent sexual harassment and violence against women in “Kebijakan

Perusahaan dated 1 December 2014”.

The policy is prominently displayed on notice boards at the Mills and the Estates muster areas. Interviews of female staff, workers and union representatives confirmed that the company

implemented the sexual harassment policy.

The Company has conducted socialization to employees either through socialization directly or

through committees eg gender socialization to employees Tungkal Ulu Gardens on June 9, 2015, which was attended by 28 participants.


The KUD has policy to prevent sexual harassment and violence against women in “Kebijakan KUD”

which stated “Mencegah pelecehan sexual dan berbagai bentuk kekerasan terhadap perempuan serta melindungi hak hak reproduksinya” (prevent sexual harassment and violence as well as

protect reproductive rights for women)

The policy is prominently displayed on notice boards at the Mills and the Estates muster areas.

Interviews of female staff, workers, union representatives, and scheme smallholders confirmed that the company and scheme smallholders mplemented the sexual harassment policy.

Sosialization of KUD policy conducted on 13th August 2015 held at KUD SP7 and Clubhouse which

was attended by 43 participants.

Yes

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6.9.2 A policy to protect the reproductive rights of all,

especially of women, shall be implemented and

communicated to all levels of the workforce.


Mill and Estate:

The company has policy to protect the reproductive rights in “Kebijakan Perusahaan dated 1st

December 2014”.

The policy is prominently displayed on notice boards at the Mills and the Estates muster areas. Interviews of female staff, workers and union representatives confirmed that the company

implemented the sexual harassment policy.

The Company has conducted socialization to employees either through socialization directly or

through committees eg gender socialization to employees Tungkal Ulu Gardens on June 9, 2015, which was attended by 28 participants.


The KUD has policy to protect the reproductive rights in “Kebijakan KUD” which stated “Mencegah

pelecehan sexual dan berbagai bentuk kekerasan terhadap perempuan serta melindungi hak hak reproduksinya” (prevent sexual harassment and violence as well as protect reproductive rights for

women)

The policy is prominently displayed on notice boards at the Mills and the Estates muster areas.

Interviews of female staff, workers, union representatives, and scheme smallholders confirmed that the company and scheme smallholders implemented the sexual harassment policy.

Sosialization of KUD policy conducted on 13th August 2015 held at KUD SP7 and Clubhouse which

was attended by 43 participants.

Yes

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6.9.3 A specific grievance mechanism which respects

anonymity and protects complainants where

requested shall be established, implemented, and communicated to all levels of the

workforce.


Mill and Esate:

Mechanism for complaints management where it needs to protect its confidentiality for complaint

submitter was found in company policy’s draft as in one of points of this policies stated that: “To provide appropriate information for those who inqury it and to proted its confidentiality for

whistleblower cases in accordance to law regarding environmental and social issue, food safety, health and safety work, so that it enables them to more participate to the decision making

processes for improving company’s performance.

Standard Operating Procedure, No. SOP: XX-HR-308.5-RO; Revision: 0, Desember 11th 2009:

Employees complaints: submission and settlement

Mechanism for complaints management where it needs to protect its confidentiality for complaint submitter was found in company policy’s draft as in one of points of this policies stated that:

“To provide appropriate information for those who inqury it and to protect its confidentiality for whistleblower cases in accordance to law regarding environmental and social issue, food safety,

health and safety work, in order tp enables them to more participate to the decision making processes for improving company’s performance.

Based on interviews with the Gender Committee members indicated that they had a good understanding associated with the grievance mechanism and has an annual program both routine

and non-routine, including counseling to women employees and sosialization of their rights.

Yes

Criterion 6.10

Growers and millers deal fairly and transparently with smallholders and other local businesses.

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6.10.1 Current and past prices paid for Fresh Fruit

Bunches (FFB) shall be publicly available.


Mill:

In accordance with Agreement Letter between PT. IIS and scheme smallholder, determination of

FFB price from scheme smallholder refers to price determination by local authority of Jambi Province through pricing committee (working group) “Rapat Kelompok Kerja Penetapan Harga TBS

Provinsi Jambi”. The price is updated and announced regularly every week by using the following formula:

K {(CPOprice x R-CPO) + (Kernelpricex R-kernel)}.

e.g. result of pricing committee meeting for period of May 27, 2016 until June 2, 2016: CPO price Rp 7,773.8, PK price Rp. 6.352,07, “K” index 89.55, price for 10-20 planting years is Rp 1,823.09,

price for 21-24 planting years us 1,768.73

Current and past prices paid for FFB has been made publicly, through display of the FFB price in

Mill’s notice board and smallholders able to access the FFB price by phone.

Based on interview with FFB supplier, company provided FFB price changes regularly. The current FFB price placed on mill’s notice board, so easy to update. No significant objection / complaint

regarding price determination.


KUD’s staff is in coordination with company to update the latest FFB price. The latest FFB price placed on cooperative office and updated accordingly.

Yes

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6.10.2 Evidence shall be available that growers/millers

have explained FFB pricing, and pricing

mechanisms for FFB and inputs/services shall be documented (where these are under the

control of the mill or plantation)


Mill:

As previously mentioned, FFB pricing mechanism regulated independently by working

group/committee. The meeting held on weekly basis involving government representatives, plantation companies’ representative, and smallholders/cooperative members.

The guidance for FFB price calculation and structure s per “Peraturan Menteri Pertanian

No.14/Permentan/OT.140/2/2013 tentang Pedoman Penetapan Harga Pembelian TBS kelapa sawit

produksi pekebun” and “Peraturan Gubernur Jambi No.36 tahun 2011 dan Keputusan Gubernur Jambi No.206/KepGub/Disbun/2014 tentang pembentukan Tim Penetapan dan Pemantauan Harga

Pembelian TBS produksi Pekebun di Provinsi Jambi”.

The price information from Plantation Agency can be accessed freely by public. In addition, the company has also provided copy of price determination to

The explanation on the FFB pricing formula and based on interview with smallholders, they understood of FFB pricing mechanism and no complaint was noted regarding FFB price.


KUD’s staff and smallholder members confirmed, they understood the FFB price that is

determined twice monthly by a Committee consisting of Provincial Government, Palm Oil Producers and Smallholder Cooperative Representatives. Head of cooperatives meet with PT IIS weekly and

are involved in the negotiation of prices for FFB transport and premium for FFB quality.

Yes

6.10.3 Evidence shall be available that all parties

understand the contractual agreements they

enter into, and that contracts are fair, legal and transparent.


Mill and Scheme smallholders:

Based on document review, contract/agreement prepared with consent from both parties. Contracts

are counter signed by both parties as proof of understanding, and each party keep the copy.

All clauses in contract are considered to be fair and transparant. From stakeholder consultations, company’s partner/supplier admitted no coercion and/or any use of force from both side. Each

partiy enters into agreement with consent.

Yes

6.10.4 Agreed payments shall be made in a timely manner.


Mill and Scheme smallholders: Payment for FFB purchasing from farmer/parcel owner of scheme smallholders made through

collective account in each cooperatives. The Cooperative management than will distribute to each

farmer group (KT) and farmers group distribute the payment to each parcel owners. Revealed from interview with third party FFB supplier/contractor that so far PT IIS Tungkal Ulu always pays on

time as per agreement.

Yes

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Criterion 6.11

Growers and millers contribute to local sustainable development where appropriate

6.11.1 Contributions to local development that are based on the results of consultation with local

communities shall be demonstrated.


Mill and Estate: The company has a commitment in providing donation and aid to surrounding communities in form

of CSR program. The CSR program comprise of education, religious activity, farming, infrastructure

and health. The CSR programme 2016. Consist of 27 projects are grouped in 6 activities.

The company has implemented CSR program in 2016, e.g. - Donation for SD Permata Agri in Merlung village dated 27 February 2016, as in document of BAP

No. 16/CSR/KTU/3d/2016. - Donation of medical equipment for Puskermas Merlung dated 11 April 2016, as in BAP No.

17/CSR/KTU/3d/2016.

- Donation of construction materiel for church in Lampisi village dated 26 April 2016, as in BAP No. 22/CSR/KTU/4a/2016.

- Donation to Pulau Pauh village dated 29 February 2016 as in BAP No. 27/CSR/KTU/5z/2016.


Record of local contribution is available in KUD, e.g. in KUD Karya Jaya, contribution for “Karang Taruna” activities (Rp. 2,052,450) and road maintenance in village (Rp. 1,368,300,) and ik KUD

Harapan Jaya; ocal contribution has determined for each member is Rp. 20,000/month.

Yes

6.11.2 Where there are scheme smallholders, there

shall be evidence that efforts and/or resources

have been allocated to improve smallholder productivity.


PT IIS Tungkal Ulu has a specific department to help management and handle the development of

scheme smallholders. The department consists of manager, assistant manager and 6 assistants,

with other worker such as supervisor.

Training for scheme smallholders provided as part of capacity building. The training comprises of HCV, oil palm BMP, pest and disease, environmental aspect-impact (AMDAL), social impact,

agrochemical handling, fertilizer application, etc.

Yes

Criterion 6.12 No forms of forced or trafficked labour are used.

6.12.1 There shall be evidence that no forms of forced

or trafficked labour are used.



Based on the result of interview with Labor Union management, worker, local government confirmed that there was no indication the company did the practice of forced labor and human

trafficking.

Yes

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6.12.2 Where applicable, it shall be demonstrated that

no contract substitution has occurred.



Based on the result of interview with Labor Union management and document verification of “Surat

Perjanjian Kerja” shown that there was no indication substitution contract practiced.

Yes

6.12.3 Where temporary or migrant workers are

employed, a special labour policy and procedures shall be established and

implemented.


081381753307

Mill, Estate and Scheme smallholders: The agreement for temporary workers is available and signed by workers. There was no noted migrant worker.

Yes

Criterion 6.13 Growers and millers respect human rights

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6.13.1 A policy to respect human rights shall be

documented and communicated to all levels of

the workforce and operations (see Criteria 1.2 and 2.1).


Mill an Estate:

Sighted during document observation a Human Rights policy documented in “Company Policy /

Kebijakan Perusahaan”, issued in 1st December 2014 by top management of PT. IIS.

The policy stated “Respect the human rights and treats all employee justly and fair in all aspects including recruitment, assessment of wor condition and environment, and representatively,

regardless etchnical, caste, nations, religion/ believe, disability, gender, sexual orientation, unin

membership, political afiliation, and or age”

The company has communicated this policy to all level of worker, e.g. socialization on 11th March 2015, attended 27 workers in Mill and on 6th January 2015, attended by 106 wokers and 9th June

2015 attended by 20 workers in Estate.

This policy has also been made available for everybody through poster and pamflet, put on wall at

the office.

There is no indication of violence or abuse on human right arise from interview with stakeholder local government and workers.

Smallholder Scheme: KUDs has a policy to respect for human rights by treating all employees and members of the

Cooperative equitably, both in terms of reception, assessment, working conditions and environment as well as representation regardless of race, caste, religion/belief, disability, gender, sexual

orientation, union membership, political and age.

KUD also has communicated this policy through ocialization, e.g. on 13th August 2015 in KUD SP7

and Clubhouse wich was attended 43 members.

Yes

PRINCIPLE 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS

(N/A – No any new planting)

There is no new planting planting after 2005, the completed planting in 2003.

PRINCIPLE 8: COMMITMENT TO CONTINUAL IMPROVEMENT IN KEY AREAS OF ACTIVITY

Criterion 8.1

Growers and millers regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continual improvement in key operations.

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8.1.1 The action plan for continual improvement shall

be implemented, based on a consideration of

the main social and environmental impacts and opportunities of the grower/mill, and shall

include a range of Indicators covered by these Principles and Criteria.

As a minimum, these shall include, but are not necessarily be limited to:

Reduction in use of pesticides (Criterion

4.6); Environmental impacts (Criteria 4.3, 5.1

and 5.2);

Waste reduction (Criterion 5.3);

Pollution and greenhouse gas (GHG)

emissions (Criteria 5.6 and 7.8); Social impacts (Criterion 6.1);

Optimising the yield of the supply base;


A continuous improvement plan has been prepared and internal audit conducted to identify

environmental and social activities, such as:

- Installed a biogass power plant, currently under construction and it will be commenced 2017. - Eficiency fertilizer usage with applied fertilizer on stacking frond.

- Applied EFB ashes as fertilizer, fibre and shell are burned in boiler for electricity. - Planting beneficial plant for natural predator.

- CSR program

- Reserve HCV areas - etc.

Yes

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Appendix “B”

Time Bound Plan

Name of Mill Address Time bound for

certification

Status as of March 2015

Buatan I Delik & Pangkalan Kerinci Village, Bunut Langgam District, Pelalawan Regency, Riau

2010 Certified on 16 September 2010

Buatan II Delik & PangkalanKerinciVillage, Bunut Langgam District, Pelalawan Regency, Riau


Ukui I Ukui Village, Ukui District, Pelalawan Regency, Riau 2010 Certified on 1 March 2011

Ukui II Ukui Village, Ukui District, Pelalawan Regency, Riau 2010 Certified on 1 March 2011

Tungkal Ulu Pulau Pauh / Penyabungan / MerlungVillage, Tungkal Ulu District, Tanjung Jabung Regency, Jambi

2011 Certified on 15 August 2012

Muara Bulian Singoan / Bukit Sari / BulianJayaVillage, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi


Topaz PetapahanVillage, Tapung District, Kampar Regency, Riau 2013 Certified on 30 March 2015

Taman Raja Lubuk Bernai / Kampung Baru / Pelabuhan Dagang / Pematang Pauh Vilage,

Tungkal Ulu District, Tanjung Jabung Regency, Jambi

2013 Certified on 20 February 2015

Segati Langkan / Penarikan / Tambak / SotolVillage, Langgam District, Pelalawan Regency, Riau

2014 Main Audit in December 2014.

Tanah Datar Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatera Brought Forward from 2015 to 2013

Certified on 18th May 2015

Aek Nabara S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu

Regency, North Sumatra

Brought Forward from 2015

to 2013

Certified on 6 March 2015

Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North Sumatra

Brought Forward from 2015 to 2013

Certified on 21 April 2015

Peranap Simelinyang / Pauh Ranap / Sengkilo Village, Peranap District, Indragiri Hulu

Regency, Riau


to 2013

Certified on 7 January 2015

Bungo Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo

Regency, Jambi

2016 Certified on 3rd December 2015

Tanjung Selamat

Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

2017 Certified on 26th May 2015

Gunung

Melayu I

RahuningVillage, Bandar Pulau District, Asahan Regency, North Sumatra 2017 Certified on 7th September 2015

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Gunung Melayu II

GontingMahalaVillage, Bandar Pulau District, Asahan Regency, North Sumatra 2017 Certified on 8th July 2015

Negri Lama I Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra


Certified on 6th April 2015

Negri Lama II Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North

Sumatra

2018 Certified on 3rd December 2015

Buatan Delik & Pangkalan Kerinci Village, Bunut Langgam District, Pelalawan Regency, Riau


Ukui & Soga Ukui Village, Ukui District, Pelalawan Regency, Riau 2011 Certified on 1 March 2011

Buatan

(Plasma)

Kerinci Kanan, Pangkalan Kerinci, Dayun Village, Siak & Pelalawan Regency, Riau 2011 Certified on 13 March 2012

Ukui (Plasma) Ukui & Lubuk Batu Jaya District, Pelalawan & Inhu Regency, Riau Brought forward from 2012 to 2011

Certified on 11 June 2012

Tungkal Ulu Pulau Pauh/Penyabungan/Merlung Village, Tungkal Ulu District, Tanjung Jabung

Regency, Jambi


Muara Bulian Singoan/Bukit Sari/ Bulian Jaya Village, Muara Bulian/Pemayung District, Batang Hari Regency, Jambi


Buatan (KKPA) Kerinci Kanan, Pangkalan Kerinci, Dayun District, Siak & Pelalawan Regency, Riau 2012 Certified on 17 January 2013

Tungkal Ulu (Plasma)

Renah Mendalo, Merlung, Muara Papalik District, Tanjung Jabung Barat Regency, Jambi

2012 Certified on 11 July 2013

Muara Bulian (Plasma)

Maro Sebo Ilir District, Batanghari Regency, Jambi 2012 Certified on 12 July 2013

Muara Bulian

(KKPA)

Maro Sebo Ilir District, Batanghari Regency, Jambi 2012 Certified on 12 July 2013

Topaz & Seed Garden

Petapahan Village, Tapung District, Kampar Regency, Riau 2013 Certified on 30 March 2015

Taman Raja & Badang

Lubuk Bernai / Kampung Baru / Pelabuhan Dagang / Pematang Pauh Village, Tungkal Ulu District, Tanjung Jabung Regency, Jambi

2013 Certified on 20 February 2015

Segati Langkan / Penarikan / Tambak / Sotol Village, Langgam District, Pelalawan

Regency, Riau

2014 Public Notification conduct in

October 2014. Main Audit in Dec 2014

Penarikan &

Gondai

Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar

Regency, Riau

2014 Main Audit in December 2014

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Penarikan (KKPA)

Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar Regency, Riau

2014 Moved to 2016

Gunung

Sahilan (KKPA)

Gunung Sahilan Village, Lipat Kain District, Pelalawan Regency, Riau 2014 Moved to 2016

Bahilang Bahilang Village, Tebing Tinggi District, Serdang Bedagai Regency, North Sumatra Brought Forward from 2015

to 2013

Certified 18th May 2015

Tanah Datar Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatra Brought Forward from 2015 to 2013


Aek Nabara S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu

Regency, North Sumatra


to 2013

Certified on 6 March 2015

Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North

Sumatra


to 2013


Peranap Simelinyang / Pauh Ranap / Sengkilo Village, Peranap District, Indragiri Hulu

Regency, Riau


to 2013

Certified on 7 January 2015

Bungo Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo

Regency, Jambi


to 2014

Certified 3rd December 2015

Peranap

(Plasma)

Simelinyang / Pauh Ranap / Sengkilo Village, Peranap District, Indragiri Hulu

Regency, Riau

2016 Certified 19th August 2016

Bungo Tebo

(Plasma)

Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo

Regency, Jambi

2016 -

Tanjung

Selamat

Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North

Sumatra


to 2014


Pangkatan Sennah Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra Brought Forward from 2017

to 2014


Sentral & Batu Anam

Gonting Mahala Village, Bandar Pulau District, Asahan Regency, North Sumatra Brought Forward from 2017 to 2014

Certified 8th july 2015

Pulau Maria Rahuning Village, Bandar Pulau District, Asahan Regency, North Sumatra Brought Forward from 2017

to 2014

Certified 7th September 2015

Negri Lama Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra



Aek Kuo Aek Korsik Village, Aek Natas District, Labuhan Batu Regency, North Sumatra Brought Forward from 2016

to 2013


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Appendix “C” RSPO Certificate Details

PT Inti Indosawit Subur – Tungkal Ulu

Jl. MH. Thamrin No. 31 Jakarta

10230

INDONESIA

Certificate Number : RSPO 594422

Date of Certificate : 15/08/2012 End of certificate : 14/08/2017

Applicable Standards: RSPO Principles & Criteria: 2013; RSPO Supply Chain Certification Standard 2014: Supply Chain Certification requirement for CPO Mills – Module E Mass Balance

(MB)

TUNGKAL ULU PALM OIL MILL AND SUPPLY BASE

Location Address Pulau Pauh, Penyabungan, Merlung Village, Tungkal Ulu

District, Tanjung Jabung Regency, Jambi Province, INDONESIA

GPS Location 102° 58’ 53” E - 1° 18’ 01” S

FFB Tonnage Total 341,514 MT

CPO Tonnage Total 71,717 MT

PK Tonnage Total 17,075 MT

Certified CPO Tonnage Total 53,939 MT

Certified PK Tonnage Total 13,042 MT

Certified Own estates FFB Tonnage 99,181 MT

Certified Smallholder FFB Tonnage 142,333 MT

Estate Number of smallholder

Mature (Ha)

Immature (Ha)

Total Land-use Titles

(Ha)

Annual FFB Production

(MT)

1. Own estate: Tungkal Ulu Estate

- 4,396 0 4,556 99,181

2. Scheme

smallholders

KUD Bina Usaha 450 910 0 910 20,194

KUD Sawit Kita 509 1,028 0 1,028 21,762

KUD Karya Kita 579 1,168 0 1,168 26,984

KUD Karya Jaya 400 810 0 810 19,744

KUD Panca Mukti 385 792 0 792 5,476

KUD Sari Bumi 377 764 0 764 1,645

KUD Manunggal Jaya 104 208 0 208 3,238

KUD Sawit Mulia 676 1,362 0 1,362 7,021

KUD Argo Makmur 560 1,130 0 1,130 24,953

KUD Harapan Jaya 560 1,130 0 1,130 11,316

Subtotal 4,600 9,302 0 9,302 142,333

TOTAL 13,698 0 13,858 241,514

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Appendix “D” Assessment Plan

Date Time Subjects Haeruddin Nanang

Mualib

Bukit

Bagja

PRSPO LA PRSPO-SA

PRSPO-OHS/EMS

Monday,

13/06/2016

11.05 – 12.30 Flight Jakarta – Jambi by GA 132 √ √ √

Travelling Jambi – Estate by Car √ √

Tuesday, 14/05/2016

08.00 – 08.30 Opening Meeting: Presentation by PT. IIS – Tungkal Ulu

Presentation by BSI Indonesia

√ √ √

08.30 – 12.00

Field Visit: Tungkal Ulu Estate

Herbicide application programmes,

harvesting, fertilising operations, terracing, road maintenance, Barn owl,

beneficial plant, Landfill, housing complex, Storage, workshop, diesel

tanks, clinic, etc (including interview

with sprayer team and harvester).

√

Field Visit: Tungkal Ulu Estate

Boundary stones, HCV areas, riparian

zone, road maintenace and other facilities in line-site, (Tempat Penitipan

Anak, school, school bus, etc), and interview with labour union, Gender

Comittee, local contractors, NGO, etc.

√

Document Review: Tungkal Ulu Mill

General information, time bound plan and partial certification verification,

RSPO P & C.

√

12.00 – 14.00 Lunch

14.00 – 17.00 Field Visit: Tungkal Ulu Estate

Herbicide application programmes,

harvesting, fertilising operations, terracing, road maintenance, Barn owl,

beneficial plant, Landfill, housing complex, Storage, workshop, diesel

tanks, clinic, etc (including interview

with sprayer team and harvester) - Continued

Document Review:

Tungkal Ulu Estate

√

Document review and Stakeholder interview:

Labour union, Gender committee, local contractors, NGO, etc (Continued)

√

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Date Time Subjects Haeruddin Nanang

Mualib

Bukit

Bagja

PRSPO LA PRSPO-SA

PRSPO-OHS/EMS

Field Visit: Tungkal Ulu Mill

PPE, safe working environment, walk ways, signs, EFB, POME treatment,

emissions, diesel tanks, fire

extinguishers, first aiders and boxes, workshop, storage, Clinic, housing

complex, interview with mill’s workers,etc

√

Wednesday,

15/06/2016

08.00 – 12.00 Document Review:

Tungkal Ulu Estate

√

Stakeholder Interview:

Interview with local government (BLH,

BPN, Disnakertrans and Dinas Perkebunan)

√

Document review: Tungkal Ulu POM

RSPO SCCS

√

12.00 – 14.00 Lunch

14.00 -17.00 Document Review: Tungkal Ulu Estate

√ √

Stakeholder Interview: Interview with local government (BLH,

BPN, Disnakertrans and Dinas

Perkebunan)

√

Thursday,

16/06/2016

08.00 – 17.00 Document review and Field Visit:

KUD Manunggal Jaya (9 samples) √ √

Document Review and field visit: KUD Karya Kita (6 samples)

√

Friday,

17/06/2016

08.00 – 17.00 Document Review and field visit:

KUD Karya Kita (18 samples)

√ √ √

Saturday,

18/06/2016

08.00 – 16.00 Document Review and field visit:

KUD Harapan Jaya (22 samples)

√ √ √

16.00 – 16.30 Preparing Closing Meeting √ √ √ 16.30 – 17.00 Closing Meeting √ √ √

Trip to Jambi

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Appendix “E” Stakeholder Contacted

No. Institution

1 Local Contractor (CV. Bina Makmur)

2 Head of Labour Union (PUK SPSI)

3 Dinas Tenaga Kerja Kabupaten Tanjung Jabung

(Labour Department of Tanjung Jabung Regency) 4 Badan Lingkungan Hidup Kabupaten Tanjung Jabung

(Environmental Department of Tanjung Jabung Regency) 5 Dinas Perkebunan Kabupaten Tanjung Jabung

(Plantation Department of Tanjung Jabung Regency)

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Appendix “F”

RSPO SCCS, 2014 – FOR CPO Mills (MODULE E): MASS BALANCE

Criterion E.1. Definition

Requirement Evidence Compliance

E.1.1 Certification for CPO mills

is necessary to verify the volumes of certified and

uncertified FFB entering the mill and volume sales

of RSPO certified producers. A mill may be

taking delivery of FFB

from uncertified growers, in addition to those from

its own certified land base. In that scenario, the mill

can claim only the volume

of oil palm products produced from processing

of the certified FFB as MB.

Pabrik Tungkal Ulu (PTU) Facility use mass balance system

as it is taking delivery of FFB from uncertified growers in addition to those from its own certified supplier.

Based on procedure “Traceability” no. AA-MPM-OP-1400.17-

R4 updated 23rd April 2015 and “Book Keeping” no. AA-MPM-OP-1400.18-R4 updated 23rd April 2015 described that FFB

received from certified areas will be marked “Sustainable

FFB” and FFB from non certified area is marked as “Non certified FFB” and only claim as “MB” in supply chain model.

Yes

Criterion E.2. Explanation


E.2.1 The estimated tonnage of

CPO and PK products that could potentially be

produced by the certified mill must be recorded by

the CB in the public

summary of the P&C certification report. This

figure represents the total volume of certified palm

oil product (CPO and PK)

that the certified mill is allowed to deliver in a

year. The actual tonnage produced should then be

recorded in each subsequent annual

surveillance report.

For latest surveillance period, CB has recorded estimation of

tonnage of CPO and PK product that can be produced by PTU mill, based on actual CPO and PK production in the

previous period. The figures has been submitted to the RSPO E-trace PTU Mill.

Summary of projection year Aug 2015 – Aug 2016 and actual production of PTU is as follows:

Description Projection

(MT)

Actual

(MT)*

Total FFB 308,596 141.228.276

Certified own

FFB

106,342 100,580

Certified

Smallholder FFB

120,293 101,022

Certified CPO 52,237 44,718

Certified PK 12,386 10,833

*Starting Aug 15th (certification period up to May 2016

The figure shows that there was no over production of CPO

and PK within the recent certificate period. In ASA-4

assessment, the actual production of CPO and PK is recorded in daily, monthly and annual basis.

Yes

E.2.2 The mill must also meet all registration and

reporting requirements for

The company has fullfilled all registration and reporting requirements for the MB supply chain through the RSPO

supply chain managing organization (e-trace). Active e-

Yes

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the appropriate supply

chain through the RSPO

supply chain managing organization (RSPO IT

platform or book and claim).

trace account available for the period of August

15/08/2015 – 14/08/2016.

Records of CPO and PKO transaction during certification

perid available in e trace account. All transactions matchs with CPO and PK sales contract and delivery notes.

Sales contract document completed with the supply chain code “Mass Balance”.

Criterion E.3. Documented procedures


E.3.1 The site shall have written

procedures and/or work instructions to ensure the

implementation of all the

elements specified in these requirements. This

shall include at minimum the following:

a) Complete and up to

date procedures covering the implementation of all

the elements in these requirements

The company has implemented a supply chain and

traceability procedure under “Traceability” no. AA-MPM-OP-1400.17-R4 and “Book Keeping” no. AA-MPM-OP-1400.18-

R4, updated 23rd April 2015

The procedure explains in all aspects of supply chain and

traceability scope in Gunung Melayu POM, starting from FFB harvesting, FFB delivery to Palm Oil Mill; FFB receiving and

processing in Palm Oil Mill, CPO and PK production and reporting; CPO and PK dispatch from Palm Oil Mill and

receiving in storage tank for export, Shipping instruction and preparation, CPO stock balancing post-shipping.

Yes

b) The name of the

person having overall responsibility for and

authority over the

implementation of these requirements and

compliance with all applicable requirements.

This person shall be able

to demonstrate awareness of the site procedures for

the implementation of this standard.

Based on Prosedur “Traceability” no. AA-MPM-OP-1400.17-

R4, updated 23rd April 2015, the company has appointed Mill Manger as responsible person for handling supply chain

implementation in PTU.

Based on interview, Mill manager (Mr. PH) can demonstrate

awareness and knowledge regarding supply chain procedures and requirement and has been trained.

Relevant operators such as weighbridge operators (Mrs. SMG), production / mass balance clerk, production

assisstant can demonstrate awareness on mass balance system and procedures.

Yes

E.3.2 The site shall have

documented procedures for receiving and

processing certified and non-certified FFBs.

Supply chain and traceability procedure under “Traceability”

no. AA-MPM-OP-1400.17-R4 and “Book Keeping” no. AA-MPM-OP-1400.18-R4, updated 23rd April 2015.

Based on procedure “Traceability” no. AA-MPM-OP-

1400.17-R4 updated 23rd April 2015 and “Book Keeping”

no. AA-MPM-OP-1400.18-R4 updated 23rd April 2015 described that FFB received from certified areas will be

marked “Sustainable FFB” and FFB from non certified area is marked as “Non certified FFB” and only claim as “MB” in

supply chain model.

Yes

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Criterion E.4. Purchasing and goods in


E.4.1 The site shall verify and document the tonnage

and sources of certified and the tonnage of non-

certified FFBs received.

The company has impelented verification and documentation for all incoming FFB, such as:

1. FFB delivery note that contain information: delivery note number, note serial number, date of delivery, date of

harvest, planting year, estate / hamaparan, number of bunch, estimated weight, vehicle number, departure

hour, arrival hours at the plant, signature of FFB clerks,

security, and transporters, stamp "Sustainable" for certified sources.

2. Weigh Tickets: ticket number, commmodity, source (esate and block), weighing code (in and out), weight

(in, out, deduction, netto), date, hour, number of

bunch, sortation, transporting type, vehicle number, driver, barcode, signed by operator and driver.

3. Summary of daily production that contains: incoming and processed fruit, CPO output, product quality,

delivery of palm oil and kernel.

Sample of verification for Certified Smallholder (SP1)

1. Delivery Order of FFB from Field: - Letter head: “Kelompok Tani 17 “Sakura Jaya, SPI 1

Desa Cinta Damai” - Stamp: Hamparan 17

- SP. No: 001081.

- Date: 14/06/2016 - Truck: BH 8654 EU

- Quantity: 300 bunches - Stamp: “Sustainable”.

2. Wight Bridge: - Ticket Number: PTUA216102891

- Commodity: TBS-Plasma-Sust. - Date: 14/06/2016

- Origin: SP1, KT. 17 - SP. No: 001081.

- Truck: BH 8654 EU

- Netto: 8,321 kg

Sample of verification for non certified source: 1. Delivery Order of FFB from Field:

- Letter head: “Surat Pengantar TBS”

- Stamp: Asosiasi Tani Bersama - Date: 14/06/2016

- Truck: BH 8420 EU - Quantity: 300 bunches

- ... 2. Wight Bridge:

- Ticket number: PTUA51610425

- Commodity: TBS luar - Date: 14/06/2016

- Origin: Asosiasi Tani Bersama - Netto: 10,253 kg

Yes

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- ...

E.4.2 The site shall inform the CB immediately if there is

a projected

overproduction of certified tonnage.

This has been regulated in procedure “Book Keeping” no. AA-MPM-OP-1400.18-R4, updated 23rd April 2015, 6.5.

“Head of Environment and sustainability will inform CB if

there is an over production of certified tonnage.

Data verification shows that there was no overproduction within last certification period as shown in E.21 clause.

Yes

Criterion E.5. Record keeping


E.5.1 a. The site shall record

and balance all receipts

of RSPO certified FFB and deliveries of RSPO

certified CPO and PK on a three-monthly basis.

The company has recorded all incoming FFB, CPO and PK

production, and CPO and PK deliveries on a daily basis. The

daily data are then incorporated into monthly data and balance of CPO production. Available records are:

Incoming FFB verification records

Daily production summary that calculate incoming FFB,

processed, CPO and PK production, and delivery of CPO and PK.

Balancing of CPO and PK production, stock and

despatch, both for claimed as certified and non non certified, on three monthly basis as documented in

“CPO/PK Production and sales balance”.

Example of balancing table for January – March 2016:

FFB received (Kg)

Certified Non - cert Total

January 10,126,639 6,530,589 16,657,226

Feb 8,285,529 6,914,311 15,199,840

March 8,785,816 7,188,762 15,974,578

CPO Initial Stock


January 204,892 250,648 455,540

Feb 552,028 -129,978 422,050

March 480,166 -47,126 432,990

CPO Production


January 2,339,482 1,274,678 3,614,160

Feb 1,948,396 1,365,224 3,313,620

March 1,030,361 1,401,999 3,432,360

CPO Delivery

RSPO

Certified

Non - cert ISCC Total

January 1,993,040 1,024,030 877,020 3,894,990

Feb 0 1,745,850 1,601,200 3,347,110

March 0 1,276,990 2,189,110 3,366,100

CPO Final Stock


January 204,892 250,646 455,540

Feb 562,028 -129,978 422,050

Yes

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March 393,279 -4,969 388,310

b. All volumes of palm oil and palm kernel oil that

are delivered are deducted from the

material accounting

system according to conversion ratios stated

by RSPO.

Based on daily accounting on RSPO mass balance, the company using RSPO-based accounting system and

conversion ratios, as seen in document “Book Keeping – Mass Balance CPO & PK”, updated monthly.

The book kept daily record of: incoming FFB, processed FFB, CPO stock, CPO production, PK production, CPO / PLK

delivery, and CPO/PK stock.

All delivered volumes of palm oil and palm kernel oil are deducted from such material accounting system. During

2015-2016 certificate period, there is 8,429.36 tonnes of

certified CPO shipping and 9,175.92 tonnes of certified PK.

Yes

c. The site can only

deliver Mass Balance

sales from a positive stock. Positive stock

can include product ordered for delivery

within three months. However, a site is

allowed to sell short.(ie

product can be sold before it is in stock.)

Based on review 3 monthly basis, there was no CPO

delivery from negative stock.

Yes

E.5.2 In cases where a mill

outsources activities to an independent (not owned

by the same organization) palm kernel crush, the

crush still falls under the responsibility of the mill

and does not need to be

separately certified. The mill has to ensure that the

crush is covered through a signed and enforceable

agreement.

No outsourcing N/A

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Appendix “G” Location Map of PT Inti Indosawit Tungkal Ulu

Figure 1 Location of PT Inti Indosawit Subur – Tungkal Ulu in Indonesia

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Figure 2. Location of PT Inti Indosawit Subur – Tungkal Ulu in Riau Province, Indonesia.

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Figure 3. Location of Location of PT Inti Indosawit Subur – Tungkal Ulu and neighbouring entities

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Appendix “H” Abbrevation used

AMDAL Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment) BOD Biological Oxygen Demand

BPN Badan Pertahanan Nasional (National Land Authority)

BSI British Standard Institution CPO Crude Palm Oil

CSR Corporate Social Responsibility EFB Empty Fruit Bunch

FFB Fresh Fruit Bunch GPS Global Positioning System

HCV High Conservation Value

HGU Hak Guna Usaha (Land) title for commercial use IPM Integrated Pest Management

ISO International Standards Organisation ISPO Indonesia Sustainable Palm Oil Foundation

ISCC International Carbon Certification System

IUP Izin Usaha Perkebunan (Plantation Licence) KER Kernel Extract Ratio

MB Mass Balance OER Oil Extract Ratio

P2K3 Panitia Pembina Kesehatan dan Keselamatan Kerja PK Palm Kernel

PKO Palm Kernel Oil

PKB Perjanjian Kerja Bersama (Worker Agreement) POM Palm Oil Mill

PPE Personal Protective Equipment PT Perseroan Terbatas (Limited Company)

RKL Rencana Pengelolaan Lingkungan (Environmental Management Plan)

RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) RSPO Rountable Sustainable Palm Oil

SEIA Social & Environmental Impact Assessment SIA Social Impact Assessment

SCCS Supply Chain Certification System

SOP Standard Operation Procedure